Station Growth Limits E15 and ULSD Undermines D4 RINS in 2019

E.P.A. finalized a rule providing a waiver for year-round sales. However, slow growth in an already small number of stations selling E15 outside PADD II will hinder sales. Meanwhile, D4 RIN prices will decline in the second half of the year. It will lower compliance costs for refiners in the second half. Significant upside risk remains, though, with the impact of small refinery waivers and recent storms uncertain.

Tariff on Mexican crude could be resolved

Oil and Gas Journal: US President Donald Trump announced that he would impose a 5-25% tariff on all Mexican goods. There are ways to avoid the tariff on imports of Mexican crude oil, but at this point it is unclear whether those will succeed, according to an analysis from Energy Security Analysis Inc. If not, ESAI says, some refiners will pay more, and some crude will head to Asia.

Is There Really An Oil Shortage?

Oil Price: “I am not sure there is a supply shortage,” Khalid al-Falih, the energy minister of the world’s top oil exporter and OPEC’s largest producer, Saudi Arabia, told Reuters in the middle of May, commenting on concerns that a growing number of supply outages may have tipped the market into deficit.