Ultra low sulfur distillate spread tracks RINs volatility

摘要

Houston—US Gulf Coast ultra low sulfur distillate spreads are tracking moves in the volatile market for US renewables credits, or RINs, according to Platts data. Ultra low sulfur heating oil (ULSHO) has the same product specifications as ULSD on the Houston-to-New York Colonial Pipeline. However, ULSHO does not have a renewable fuel obligation because it is designated for off-road use, while the 62 grade ULSD is designated for on-road use. US federal renewables mandates set targets for blending of renewables into transportation fuel such as ULSD.