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Outside Investors Mostly Add Bullish Positions in Biofuels' Futures, Options Markets, CFTC Says

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Money managers mostly added to their bullish or net long positions in the biofuel futures and options markets, according to the Commodities Futures Trading Commission's weekly Commitments of Traders Report released Friday.

The weekly COT Report, as of the week ending May 12, showed that money managers are net long, a bet that the market will go higher, in the California LCFS market by 62,975 contracts, up from 60,714 contracts a week ago.

The COT report showed that money managers added to their net long position to 1,078 contracts in the D6 RINS Current Year futures and options markets.

In the D4 Biodiesel RINS Current Year futures and options markets, money managers hold a net long position of 2,473, down from 3,453 a week ago.

For ethanol, money managers are net long by 6,601 contracts, up from 6,263 contracts a week ago in the futures and options markets.

Money managers are net long soybean oil futures and options by 162,287 contracts, down from 165,725 contracts a week ago.

Money managers are net short Malaysian palm oil futures by 1,335 contracts, up from 1,065 contracts a week ago.

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Commodities

Carbon Capture Offers Fastest Route to Cleaner Data Centers, Wood Mackenzie Says

Carbon capture attached to gas-fired power plants offers the quickest way to reduce emissions from data centers as electricity demand could rise by 100 gigawatts to 200 GW by 2030, Wood Mackenzie said in a Thursday note.Data centers used about 450 terawatt-hours of electricity in 2025 and produced around 0.2 billion metric tons of carbon dioxide emissions annually, representing more than 0.5% of global emissions, the note said.Wood Mackenzie said steel, chemical, and cement industries emit far more carbon dioxide at 3.5 billion mt, 3 billion mt, and 2.3 billion mt annually, respectively, limiting the broader climate impact of cleaner data centers alone.US data centers currently emit 548 kilograms of carbon dioxide per megawatt-hour, or 48% above the national grid average, as artificial intelligence continues driving higher electricity consumption, according to Wood Mackenzie.Natural gas remains the primary source of near-term data center power additions, while all three major combined-cycle gas turbine manufacturers are expanding capacity after reaching full order backlogs, the note said."With gas power dominating buildouts right now and 58 GW already in development in Texas alone, the practical question isn't whether data centers will use gas, it's whether that gas will be decarbonized," said Peter Findlay, director of CCUS Analytics at Wood Mackenzie.Carbon capture systems can remove 92% to 98% of emissions from gas-fired plants, while developers can install the technology within three to four years or retrofit existing facilities within three to five years.The note estimated carbon capture would increase US gas-fired electricity costs by $15/MWh to $45/MWh after federal 45Q tax incentives, raising total power costs to roughly $115/MWh."At roughly $115 per MWh including capture, this represents a manageable premium for decarbonized power," Findlay said, adding that the technology is already commercially available and ready to scale.Enhanced geothermal systems could lower electricity costs to about $61 per MWh between 2030 and 2035, though only 1.5 GW are currently in the development pipeline.The note said restarted nuclear plants could generate decarbonized electricity at roughly $155 per MWh, although only 11.5 GW of retired nuclear capacity remains available in the US.Wood Mackenzie said long-duration energy storage technologies still face high costs of $100/MWh to $300/MWh, limiting their competitiveness against other low-carbon energy options.Wood Mackenzie said renewable energy and battery storage will remain important for cleaner power grids, although solar and wind alone cannot reliably meet constant data center electricity demand without significant natural gas backup."This isn't an either-or situation," Findlay said. "Renewables will help decarbonize the overall grid, which benefits everyone. But for data centers specifically - with their massive, constant power demands - you need firm capacity."Wood Mackenzie said hyperscalers are facing growing pressure to balance rapid expansion of artificial intelligence with long-term emissions-reduction commitments."Global data center emissions will increase," Findlay said, adding that strong balance sheets and public sustainability commitments will shape how hyperscalers address emissions over the coming decades.

Commodities

US Natural Gas Update: Futures Climb on Small Inventory Build, Increased Cooling Demand Forecasts

US natural gas futures rose in after-hours trade on Thursday due to a smaller-than-expected storage build and supportive weather forecasts.Front-month Henry Hub futures and the continuous contract both rose by 1.96% to $2.92 per million British thermal units.The US Energy Information Administration reported an 85 Bcf increase in natural gas storage for the week ending May 8. The weekly inventory build was smaller than some forecasts as high as 91 Bcf, but largely in line with most analyst forecasts of an 84-87 Bcf build and close to the five-year average injection of 84 Bcf.Total working gas in storage climbed to 2,290 Bcf, with the surplus versus the five-year average holding near 140 Bcf. Inventories are now about 2.3% above year-ago levels and roughly 6.5% above seasonal averages, according to Trading Economics. By comparison, the same week last year recorded a larger storage injection of 109 Bcf.Weather forecasts also supported prices. Barchart, citing The Commodity Weather Group, said Thursday that forecasts turned warmer, with above-normal temperatures expected across the Midwest through May 18. The warmer outlook could lift natural gas demand from power utilities as air-conditioning use increases.Gelber & Associates said the latest forecast shift provides enough support for cooling demand to keep the market attentive to power-sector consumption, though not enough on its own to make the near-term decisively tight.BNEF data, cited by Barchart, showed US gas production fell to 107.6 Bcf/d on Thursday, down 2.2 Bcf/d from Wednesday, but up 1% from a year earlier.Lower-48 gas demand rose 3.7% year over year to 68.2 Bcf/d, up 400 million cubic feet per day from Wednesday.Feedgas flows to US LNG export terminals came in at 17.5 Bcf/d Thursday, down 1.8% from the prior week, but up 200 MMcf/d on the day. Gelber & Associates said "LNG remains the key swing factor outside of domestic weather, but net export demand is still running below recent monthly levels, and the market is waiting for fuller LNG service to restore a cleaner pull on feedgas."

Commodities

Market Chatter: White House Weighs Gas Tax Cut as Iran Conflict Pushes Fuel Prices Higher

The White House is reviewing emergency fuel-price relief options as US gasoline prices remain above $4.50 per gallon during the Iran conflict, Reuters reported Thursday, citing people familiar with the matter.The Trump administration is considering suspending the federal gasoline tax, a move that could lower pump prices by 18 cents per gallon.Officials previously viewed the proposal as unnecessary, but growing fuel costs and economic concerns are increasing pressure on the administration to act.One person familiar with the discussions said the White House now believes Trump needs "a visible consumer relief move now" after gasoline prices jumped 50% since the war started.US consumer inflation rose to 3.8% in April, the highest level in nearly three years, while consumer confidence recently fell to a record low during the conflict, the report added.A Reuters/Ipsos poll conducted in May showed over 60% of Americans said rising gasoline prices had negatively affected household finances, while Trump's economic approval rating dropped to 30%.Republican lawmakers are growing concerned that higher fuel costs and economic pressure could damage the party's chances in November's midterm elections.White House officials are also tracking whether national gasoline prices could climb to $5/gal, according to the source, while American Automobile Association data showed prices have already crossed that level in seven US states.The White House did not immediately respond to' request 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.)]