The value of Renewable Identification Numbers nosedived after President Donald Trump ordered a 60-day regulatory freeze and put a gag order on the Environmental Protection Agency.
"People realize than RINs are worthless numbers because their values depend on government policy, and when there's no consistency in policy [from one administration to another] then you can't put a value to it," said a source.
2016 and 2017 D6 RINs, primarily generated by the production of corn-based ethanol, plunged from 66.0 cents traded Tuesday to 47.0 cents Wednesday afternoon. 2017 D4 biomass-based diesel RINs traded at 92.0 cents Wednesday afternoon, down from $1.04 the prior day.
RINs are used by obligated parties -- oil refiners and importers -- to show compliance with the Renewable Fuel Standard.
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