RINs climb high despite Trump’s victory
In a surprising turn of events, U.S. renewable fuel credits, or Renewable Identification Numbers (RINs), have escalated to their highest levels since the start of the year. This increase came amidst forecasts that Donald Trump’s reelection could soften the market due to potential regulatory easements for small refineries.
Renewable fuel credits, vital for compliance with national low-carbon fuel mandates, saw D4 and D6 RINs, linked to diesel and ethanol production, hit 79 cents on Friday. This rise reflects not only stricter compliance demands but also the influence of rising soyoil prices on the market.
Market analysts had predicted a different scenario following the election. "There’s uncertainty around whether Trump will reintroduce widespread small refinery exemptions," said Alex Hodes, an analyst at StoneX, indicating that small refineries are purchasing RINs to mitigate risks associated with potential policy changes.