Despite the high cost of US flag vessels between US ports, renewable diesel from the Gulf coast has been able to ship nearly 50,000BPD via Panama canal because of great margins. Although this is a bit looking in the rear view mirror as Phillip66 opens its new Rodeo refinery that will produce in Q2 nearly as much monthly as is being shipped from the Gulf coast. This does not even take into consideration the Singapore renewable diesel imports to the West Coast. Despite the nice recovery in LCFS pricing in Q1, we should start to see significant impact on pricing and margins over new few months. D4 RINs are finally coming under pressure again nearing 0.50 c/gal as production ramp-up in Q2 needs to be considered.
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