Latin American countries change fuel import tenders as they bet on lower RINs

Around Latin America, countries such as Peru and Ecuador are betting that US RIN prices will continue to fall in coming months and as such would boost the prices for imported gasolina and diésel. To offset any potential increase in price, several countries in the region are changing their import tenders to be more medium-term and include several cargos, rather tan just tendering for immediate cargos. RIN prices fell from about 7 cents per gallon to just above 4 cents following the EPA’s release of RFS blending mandates for 2014 through 2016. As those prices fall, due to the fact that exported barrels of fuel are not counted in RIN counting, any further drop to the RIN basket will push the price of those barrels higher.