EPA flexibility positive for refining sector, Wells Fargo says

|By:, SA News Editor

The EPA makes clear in its ruling on renewable fuels that the market has reached certain barriers to greater consumption of ethanol, and that it will make adjustments to the mandated volumes of biofuel (including ethanol) in 2014, which should support a more normal market for H2 2013 and 2014, Wells Fargo says. (EPA document)

The news removes a major barrier to investing in the refining sector, the firm believes, calling it a clear positive for HollyFrontier (HF +1.4%), PBF Energy (PBF +9.7%), Valero (VLO +4%) and Alon USA (ALJ +0.6%).