Refiners trying to raise cash are selling biofuel credits

March 28, 2020 |

In Washington, D.C., Reuters reports that U.S. refiners are selling their renewable fuel credits over the last week in an attempt to raise cash as their valuations tank during the oil price crash, and the coronavirus pandemic isn’t helping with the strain.

“Refiners are under strain as the coronavirus pandemic has sapped global demand for gasoline and jet fuel, making it unprofitable to produce those products,” according to Reuters. “Global oil demand is expected to fall by 15% to 20% in coming months, an unprecedented decline that is straining the balance sheets of numerous refiners now facing weaker margins and reduced processing.”

Reuters reports that some of the refiners that have “sold off credits last week include Monroe Energy, which co-owns a refinery with Delta Airlines in Trainer, Pennsylvania, and Delek US Holdings, which owns refineries in Texas, Louisiana and Arkansas, according to market participants.”

 

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Category: Fuels

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