"According to other industry sources, the rise in RIN prices might already be adding a 10 cent per gallon premium to U.S. gasoline prices. Perhaps more importantly, it has discouraged the United States from importing more gasoline from Europe recently. U.S. importers must obtain blending credits or RINs for the quantities they import.
"The RIN costs will have to be overcome in order to move barrels to the U.S. That will be tricky for refiners," one European fuel trader said. The U.S. East Coast, which includes the New York Harbor delivery point for the domestic gasoline futures contract, must import gasoline to help meet demand.
If the price of RINs rise further, Westhoff expects U.S. refiners to start producing and selling more fuel known as E85, which includes 85 percent ethanol, or E15, a 15 percent blend. But refiners have so far balked at that.
"Refiners continue to do everything they can to get gasoline marketers to not offer consumers E15. It is a classic marketplace battle - a battle for the barrel," said Bob Dinneen, president and CEO of the Renewable Fuels Association, which advocates for ethanol makers."
Not such a great 'analysis' accepting ethanol propaganda which breaks Econ101 rules.
EPA is dishonestly trying to force refiners into supplying gasoline with more than 10% ethanol.
But all the testing has proven even the newest cars will be damaged by a higher blend rather than just excessively worn.
So to go higher is an unlimited law suit. Rightfully so. Any one who was tricked into E85 without disclosure should have a case against the refiner and distributor if warnings were not posted.
No the EPA is claiming there are plenty of RINs to get the market into 2014. We all should know that is not how markets work. Markets look forward and what they see is a completely corrupt EPA purposefully attempting to bend the market to its delusional will. Wildly corrupt and out of control Obama EPA
An informed investor would not go anywhere near these refiner partnership until their RIN position is fully understood. Market has assumed this EPA would know better than to completely disrupt the gasoline market and it was wrong. This is why RIN prices are exploding.
NTI seems to benefit from Progressive state insanity of forcing 20% ethanol by 2015. Something very different than the EPA trying to force refiners to go above 10% due to RIN costs. But if Minnesota goes through with destroying citizens cars it does solve the problem for NTI.
The others I am not so sure. As we see it is always a mistake to think Obama is going to behave in a mature, rational and responsible way. Progressive and science? That is their biggest delusion and the one which is most dangerous as their legions of sock puppets really believe they are aware and informed.