• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours Could Venezuela become a net oil importer?
  • 9 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 6 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 12 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 6 hours Why is permian oil "locked in" when refineries abound?
  • 3 hours Gazprom Exports to EU Hit Record
  • 3 hours Could oil demand collapse rapidly? Yup, sure could.
  • 4 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 3 hours Oil Buyers Club
  • 5 hours Oil prices going down
  • 1 day Teapots Cut U.S. Oil Shipments
  • 42 mins Saudi Arabia turns to solar
  • 20 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 6 hours EVs Could Help Coal Demand
  • 12 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Trending Discussions

Why Are Refiners Still Underperforming?

During this oil bust, one sub-sector of energy should have been raking it in – the refiners – and yet their stocks have remained relatively flat for 2016. Low oil prices, combined with an increase in gasoline demand as we have seen here this summer in the U.S. should have translated into big moves for Valero (VLO), Tesoro (TSO) and CVR Energy (CVR), but instead we've seen the refiners lag throughout most of the year.

We can isolate two reasons for this; A domestic glut that was slow in clearing and the cost of Ethanol credits. One of them – the glut - has been getting better, while the other is getting worse. And this continues to hold me back from getting excited about refining stocks going into 2017. Let's look at this big hurdle to independent refiners right now, the Ethanol credit (Or RIN) game.

President Bush signed the Ethanol and Biodiesel program into law, designed to make the US more energy self-sufficient. It outlined a minimum use of biofuels as a blend to gasoline, with a scheduling program that would ratchet up the percentage of Ethanol in motor fuels as time passed. We could talk about the misguided purpose of the law, because blending ethanol into gasoline does little to move this country towards energy independence, nor does it help at all, on balance, in emissions.

Instead, let's just talk about the program, which mandates an increase in the amount of ethanol (or other biofuels) that needed to be blended into gas every year.…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News