You need more than just a NYMEX or ICE futures’ screen to keep pace with petroleum prices, based on the first 22 business days of 2021. Crude oil prices sprinted out of the gate in the first full week of the new year, but prices for Renewable Identification Number (RIN) credits, bean oil, and even ethanol occupied much of the downstream fuel limelight in subsequent sessions.
Drastically fewer miles are being driven due to stay-at-home measures to combat COVID-19, resulting in a decline in gasoline prices per gallon you can see just driving past your local filling station. But what about the price for a key component of your gas: ethanol?
U.S. ethanol prices, after nearly a year-long funk, are indicating strength for 2020.
Much of the oil, gasoline and diesel price direction in 2020 markets may be determined by whether the Middle East calms down into modern stasis, or is routinely subject to drones flying, missile assessments and damage to oil infrastructure.
It was a tumultuous year in the renewable fuel and carbon credit markets.