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Market Chatter: US to Raise 2027 Biofuel Quotas to Offset Higher 2025 Exemptions

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The US administration is considering increasing 2027 biofuel quotas by about 500 million gallons to compensate for any impact from the planned expansion of small refinery exemptions for the 2025 compliance year, Reuters reported Thursday, citing sources.

Exemptions for small refineries will likely double to 1.8 billion renewable identification number credits from 990 million, with a final decision expected before the end of this month, sources told the news agency. The move is reportedly aimed at lowering gasoline prices amid bullish global markets driven by geopolitical tensions.

A coalition of farm and biofuel groups urged US President Donald Trump to reject the move, citing steep declines in demand for crops and renewable fuels. The American Soybean Association said higher exemptions could curb biomass-based diesel demand by 500 million gallons and cut revenue of US soybean farmers by about $1 billion.

A White House official and the Environmental Protection Agency did not immediately respond to' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Commodities

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