PES deal on RINs could cut ethanol mandate by 2%

In Washington, Platts reports that consultants the Brattle Group believe if Philadelphia Energy Solutions is allowed to forego half of its RIN buy for 2016 and 2017 as part of a proposed settlement with the Department of Justice, as much as 2% of the ethanol blending mandate would shrink and RIN prices would fall accordingly as demand slips. RIN prices have recovered more than 20% since a low earlier this month thanks to expectations that the Trump Administration will wait for lawmakers to battle out the RIN issue, but are still 30% lower than when the White House announced it would try to broker a deal.