Renewable Identification Number prices saw little change Thursday despite Wednesday media reports that White House economic adviser Larry Kudlow is involved in finalizing biofuel blending mandates for compliance year 2020 under the Renewable Fuel Standard, sources told S&P Global Platts.
Oil refiners and biofuel producers have quarreled over the use of Small Refinery Exemptions (SREs) under the RFS, which biofuels producers say has cut the demand for biofuel. The Environmental Protection Agency, which is responsible for setting the mandates, has been unable to release the final mandate for 2020 after disagreement and backlash from both producers and refiners surrounding the reallocation of volumes exempted under the SREs.
Market sources largely discounted the news that Kudlow is working with other administration officials to work out a final mandate, with RINs pricing remaining little changed after the market heard the news.
"[Pricing] got a little bump yesterday when offers got lifted after [the reports], but really didn't move," a trader source said.
Other sources continued to express bearish sentiment with regards to a final mandate being released in a timely manner.
"It's all talk. Nothing has been done to change the dynamics of [RINs markets]," a broker source said. "Nothing will change unless Trump thinks he is going to lose Midwestern states [in the 2020 election]."
The White House and the EPA have not responded to requests for comment.
An EPA spokeswoman said earlier in December that the agency hopes to finalize the rule this winter, after missing its deadline to announce a final mandate.
Ethanol RINs for 2019 compliance were assessed at 13 cents/RIN on Thursday, unchanged on the day and up 0.75 cent from Tuesday levels.
