Several years ago, renewable diesel (RD) margins enticed the oil industry to invest heavily in the sector. Today, in late June 2024, nearly all refiners are operating RD plants, most of which are under pressure from an earnings standpoint due to overcapacity.
Several first-quarter earnings calls cited economic headwinds, arising from lower renewable identification number (RIN) and low carbon fuel standard (LCFS) credit pricing, as being problematic for the industry.
Fastmarkets’ credit data shows that the first-quarter D4 RIN average was 58 cents per RIN. The LCFS credit average was $64 per ton.
The prices for these credits failed to improve during the second quarter, with RINs averaging 51 cents and LCFS credits $52. The market is unlikely to see improved earnings during the second quarter.
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07.03.2024
Slower rail, barge shipments of RD, biodiesel to US West Coast
The US Energy Information Administration’s (EIA) Petroleum Supply Monthly report for April, released on Friday June 28, showed that rail and barge shipments of renewable diesel (RD) and biodiesel...
07.03.2024
DCO prices move higher on support from soybean oil markets
Please note: Fastmarkets will not publish an animal fats bulletin on Thursday July 4 due to the Independence Day holiday in the US. We will resume our domestic market...
07.03.2024
Animal protein values wide ranging; Q2 HPAI headcounts above 2022/23
Please note: Fastmarkets will not publish a bulletin on Thursday July 4 in observance of the Independence Day holiday in the US.
Limited animal protein volumes were reported...