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Renewable fuel credits jump since January ruling on refinery waivers – Valero Energy Corporation (NYSE:VLO)

U.S. renewable fuel prices have doubled since a U.S. appeals court ruled late last month that the Trump administration must reconsider three waivers it awarded to oil refineries that exempted them from biofuel blending laws, Reuters reports.

Renewable fuel credits RIN-D6-US for 2019 are trading at ~$0.19 each, up from $0.09 before the court’s Jan. 24 decision, according to the report, which also says refiners including Valero (NYSE:VLO) and Phillips 66 (NYSE:PSX) have actively bought in the market.

Traders say prices have been rising because the ruling raises the possibility of fewer small-refinery waivers going forward, creating higher demand for the credits.

Biomass-based credits RIN-D4-US for 2019 also have climbed since the ruling, reportedly to ~$0.55 each from $0.45.

Other potentially relevant tickers include ADM, GPRE, GPP, PEIX, REGI, REX, ANDE

ETFs: CORN, FUE

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