U.S. refiners are feeling the pinch not only from the lower fuel demand, but also from the surging costs for complying with the biofuel requirements as refining and blending activity is lower than usual. Under the Renewable Fuel Standard (RFS), oil refiners are required to blend growing amounts of renewable fuels into gasoline and diesel. Refiners that don’t have the infrastructure to blend biofuels must purchase tradeable blending credits known as Renewable Identification Numbers, or RINs. Because of the slump in demand, blending activity has been lower than what is typical so far this year, and the price of RINs has soared. According to Reuters estimates , the price of corn-based ethanol fuel credits has jumped five-fold so far this year. The rise in the price of credits, together with depressed refining margins amid the demand slump, has made life harder for U.S. refiners this year. RIN credits had […]