U.S. refiners sell biofuel credits to raise cash as valuations tank

Financial Post | Mar 26, 2020 at 9:43 PM
  • U.S. refiners sold renewable fuel credits last week in a bid to raise cash as their market capitalizations slumped amid the oil price crash.
  • 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.
  • Refiners buy renewable fuels credits as part of the nation’s biofuels laws, which require them to either blend biofuels like ethanol into the nation’s gasoline supply, or to buy credits to fund those who can.