Spot trades of biodiesel without Renewable Identification Numbers attached is on the rise, trade sources said, primarily to avoid RIN price volatility.
"Everything that is actually trading is RINless," one trader said Friday morning.
RINs are credits used to show compliance with the Renewable Fuel Standard, submitted by obligated parties -- refiners, blenders and importers -- to the Environmental Protection Agency. RINs may be detached and sold separately from the fuel after blending into petroleum diesel.
"RINless sales have been going on for quite some time now," another trade source said. "A lot of blenders don't want to mess with ...