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Biofuel Producers Increasing Output as EPA RFS Volumes Take Effect, CFAA Says

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The Clean Fuels Alliance America said Monday that the Environmental Protection Agency's 2026-2027 Renewable Fuel Standard volumes rule reflects recent investments in US biomass-based diesel capacity and oilseed processing.

Monday marks the effective date of the EPA's 2026-2027 RFS volumes. "EPA's rule fully accounts for the investments our industry made over the last several years to increase US biomass-based diesel capacity and oilseed processing," it said.

In a letter addressed to President Donald Trump and the EPA on Monday, the group said there is "growing evidence" that US biodiesel and renewable diesel producers are increasing production.

The letter cited an increase in domestic soy and canola processing and record use of soy oil and distillers' corn oil for biodiesel and renewable diesel production during the first months of 2026.

Additionally, by April, biodiesel and renewable diesel producers had returned to capacity utilization rates comparable to their 2024 highs.

The association said policy certainty has supported investment in domestic biofuel markets and added that further investment would be needed to sustain growth in biodiesel, renewable diesel and sustainable aviation fuel.

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Oil Drops to Two-Month Low on US-Iran Peace Deal to End War

Oil prices fell Monday morning in Asia following news that a memorandum of understanding to end the war between the US and Iran has been finalized, clearing the way for the reopening of the Strait of Hormuz.As of Monday morning in Asia, West Texas Intermediate (WTI) crude oil dropped 4.75% to trade at $80.85 per barrel. Brent crude oil fell 3.98% to $83.85 per barrel, hitting a two-month low."The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," U.S. President Donald Trump wrote on Truth Social.A signing ceremony for the MOU is expected to take place in Switzerland on Friday, Pakistani Prime Minister Shebaz Sharif wrote in an X post.Pakistan is acting as the neutral mediator in the conflict between the U.S. and Iran."Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon," Sharif wrote.

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Commodities

Natural Gas Prices Fall For 2nd Straight Week Amid Bearish Storage Build, Weak LNG Feedgas Flows

US natural gas markets were down for yet another week, following a larger-than-expected storage build and lower average LNG feedgas flows so far this month.In the futures market, the Nymex front-month contract dropped to $3.04 per million British thermal units on Friday, from $3.22/MMBtu on June 5.Natural gas spot prices, however, rose by $0.31/MMBtu to $3.26/MMBtu during the week ended June 10, from $2.95/MMBtu the prior week, according to the US Energy Information Administration's Weekly Gas Storage Supplement, released on Thursday.Prices rose across all major regional hubs this week, with a $0.16/MMBtu rise at the Waha Hub and a $0.94/MMBtu surge at Florida Gas Zone 3.This comes amid an increase in natural gas consumption by 2.7 billion cubic feet per day, or 3% compared to the previous week, according to LSEG data, driven by 3.5 Bcf/d, or 10% increase in consumption from the power sector, due to above-normal temperatures across Northern and Central US over the past week.Total gas supplies also declined during the period, by 0.5 Bcf/d, due to a 0.7 Bcf/d drop in output, which wasn't enough to offset the drop in consumption.US LNG Feedgas flows recovered this week, averaging over 17 Bcf/d, after hitting a multi-month low late last week, due to ongoing spring maintenance across several leading LNG facilities, which continued to weigh on flows. However, the June average was 16.5 Bcf/d, down from 17.5 Bcf/d in May, according to TradingEconomics.The net injection into storage for the week ended June 5 was 108 Bcf, up from 95 Bcf the prior week, bringing total gas inventories to 2,686 Bcf, according to EIA data.For the first time in weeks, the net build came in above consensus estimates at 101 Bcf, was ahead of the five-year average for this period at 95 Bcf, and was just shy of the prior year's 110 Bcf, according to data compiled by Investing.com, making it a bearish signal for the markets.All regions reported a net injection of working gas into storage for the week ended June 5, with inventories across the Pacific, Mountain, and Midwest regions higher by 15%, 6%, and 1%, respectively, compared to the prior year, while South Central and East were lower by 5% and 2%.At 2,686 Bcf, US working gas inventories were 5 Bcf, or less than 1% below the corresponding period a year ago, while still posting a 151 Bcf, or 6% surplus compared to the five-year average for this period.According to Pinebrook Energy Advisors, the latest storage reports point towards "weaker natural gas consumption than preliminary estimates had implied," while also hinting at potentially stronger-than-expected wind and solar generation.Weather forecasts have continued to indicate above-normal temperatures across most of the country from June 19 to June 25, according to the National Weather Service, leading to increased demand for space cooling and, thus, higher gas-fired power burn.A total of 34 liquefied natural gas-carrying vessels left US ports during the week, up from 29 vessels the previous week, with a total capacity of 129 Bcf, up by 18 Bcf from the prior week.Meanwhile, the US gas rig count slipped by three from 124 the previous week to 121 in the week ending June 12, according to data from Baker Hughes (BKR) released Friday. That compares with 113 gas rigs in operation a year earlier.The consolidated North American oil and gas rig count, a key early indicator of future production levels, rose by 10 to 742 from 732 the previous week.In international markets, European TTF gas prices averaged $16.65/MMBtu for the week ended June 10, $0.38/MMBtu higher than the previous week. Meanwhile, the Japan-Korea Marker averaged $18.85/MMBtu, about $0.30/MMBtu higher than the prior week.

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Commodities

Jera Receives First LNG Cargo From Australia's Barossa Project

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