Renewed US-Iran tensions lifted renewable fuel stocks 7.1% last week as higher crude prices drove renewable diesel margins higher, TPH Energy said in a Monday note.
The renewable fuels sector outperformed the S&P 500's 1.6% decline as rising crude prices boosted sentiment, the note said. OPAL Fuels (OPAL) jumped 22.2%, and Green Plains (GPRE) gained 13.9%, while Aemetis (AMTX) fell 1.9% and Montauk Renewables (MNTK) slipped 2.5%.
Higher diesel prices pushed renewable diesel indicators up 37 cents per gallon despite softer D4 Renewable Identification Number credits, the note said. Renewable diesel-corn oil and renewable diesel-white grease margins reached fresh five-year highs.
Meanwhile, renewable natural gas margins declined $1 per million British thermal units on weaker D3 Renewable Identification Number credits, while Midwest ethanol margins fell 2 cents per gallon as corn costs increased.
US spot and 2026 soybean crush margins rose $10 per ton and $6/ton, respectively, on stronger soybean oil prices, extending the crush margin to another five-year high, the note said.
In other developments, BP (BP) recorded a charge tied to its renewables business, Brazil increased its ethanol blend mandate to 32% from 30%, and Gevo doubled its 2026 earnings before interest, taxes, depreciation and amortization outlook to about $60 million, the note said.
The note also said Viridi broke ground on a renewable natural gas project in Nebraska, Waste Management unveiled plans for another renewable natural gas project in Colorado, and Neste is scheduled to report second-quarter earnings on Friday.