Ethanol-Credits Rally Threatens to Erode Refiner Profits
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The soaring cost of ethanol credits may erode full-year profits for U.S. crude-oil refiners by more than 15 percent, said Faisel Khan, Citigroup Inc.’s managing director of integrated oil and research.
The run-up in corn-based ethanol credits known as Renewable Identification Numbers, or RINs, may reduce refiner earnings by more than 15 percent this year, exceeding Khan’s earlier estimate of 5 percent to 15 percent, the analyst said at a Senate hearing in Washington today.