Volatility in physical markets has returned. BOGO which had spiked to nearly +600 is now back under 500 while FAME market is still trading spot at +350. We do note that Brazil premium FOB Paranagua that were -1400 before the EPA announcement is now best bid -1300 reflecting continuing demand weakness. Chorus of complaints about RVOs in the United States is being met by dead silence. Clearly it looks like pulling out EV RINs from the EPA announcement had the reverse effect. It is clear that higher RVOs are now tied to introduction of EV RINs. Nothing bullish here.
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