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FINWIRES

RIN Market Slides on Weaker BOHO Spread, Higher June Supply

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The Renewable Identification Numbers market fell sharply on Wednesday as a weakening BOHO spread, the price differential between soybean oil and heating oil, or diesel, and higher RIN generation in June weighed on RIN values.

On Wednesday, the August BOHO spread narrowed to $0.88 per gallon compared with $2.24/gal a month ago, prompting another heavy sell-off in RINs, according to Zander Capozzola, principal consultant at Argus Media.

The BOHO spread, which has fallen to its lowest level since early April, has been driven by soybean oil prices declining faster than diesel prices that have strengthened.

Higher RIN generation has also added pressure to the market. "RIN supply for 2026 has loosened a little following the surprise June RIN generation numbers," Capozzola told.

"This will leave the RIN bank with a slightly higher positive year-end balance, yet the market still widely acknowledges that the bank goes negative in 2027," he added.

Total gross RIN generation increased to the equivalent of 2.27 billion credits in June, up from 2.14 billion in May and 2.01 billion a year earlier.

Another factor pressuring RIN prices is the Environmental Protection Agency's indication that it intends to decide next week on outstanding 2024 small refinery exemption requests from HF Sinclair (DINO) and Delek (DK) after the companies filed an emergency motion, Capozzola said.

SRE news is always bearish for the RIN complex, the analyst added.

Alon Refining and HF Sinclair filed an emergency motion with the US Court of Appeals for the DC Circuit on July 24, asking the court to order the US EPA to issue decisions on their outstanding compliance year 2024 SRE petitions by Aug. 11, according to the Governor's Biofuels Coalition.

"The market fear is out there that the EPA could potentially release wider SRE decisions for 2025 during August ahead of the Sept. 1, 2025 compliance deadline," Capozzola said.

Price: $90.16, Change: $+0.86, Percent Change: +0.96%

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