11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
The US Energy Information Administration’s (EIA) Petroleum Supply Monthly report released on October 31, showed that August interregional shipments of biodiesel and renewable diesel (RD) on the US West Coast increased by 10% compared with July, with biodiesel deliveries rising to a six-month high.
The EIA divides the US into five Petroleum Administration for Defense Districts (PADDs). The West Coast region is PADD 5, and, due to policy incentives through low-carbon fuel programs in California, Washington and Oregon, nearly all the RD produced within the other four PADD districts is shipped west to satisfy program demands. Biodiesel shipments are noticeably smaller on average.
RD is shipped by rail and barge, while deliveries of biodiesel arrive primarily by rail.
Biodiesel deliveries to the West Coast totaled 309,000 barrels in August, up by 31% from 236,000 barrels in July and reaching a six-month high.
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