Seeking Alpha

EPA flexibility positive for refining sector, Wells Fargo says

  • 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%).
Comments (2)
  • Chris Damas
    , contributor
    Comments (1363) | Send Message
     
    This is a false dawn.

     

    Other than promising more flexibility for 2014, the EPA did nothing to alleviate the main problem - 13.8 billion gallons of mandated corn based ethanol is more than 10% of US gasoline consumption.
    6 Aug 2013, 03:28 PM Reply Like
  • medzjohn
    , contributor
    Comments (315) | Send Message
     
    But it beats uncertainty. The sharks in the RIN market have fed and swam off.
    7 Aug 2013, 12:06 AM Reply Like
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