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S Illinois | Those other 4 RIN credit creators are tiny markets compared to ethanol. The largest 4 areas of gasoline consumption in the US are TX, CA, FL, and NY. Those locations have different blending economics than facilities near ethanol plants. As blending rates go up in places like the Midwest where ethanol is cheap and easy to source, blending rates can go down in those large markets which are further away from the ethanol production. It’s win win for oil companies. Buy cheap ethanol to meet the RFS in the Midwest and then make more margin on the coasts using more of their own produced product. | |
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Pricing picture going forward, based on facts today........
