NEW YORK (Reuters) - U.S. renewable fuel credits for 2019 traded higher on Tuesday, market participants said, following news that President Donald Trump ordered cabinet members on Monday to assuage farmers’ concerns over his administration’s biofuel policy.
Trump held a meeting at the White House, two sources familiar with the discussions said, after farmers grew angry with the administration’s decision earlier this month to grant exemptions from the nation’s biofuel laws to 31 refineries.
D6 credits traded at 13.5 cents apiece following the news, up from 12.5 cents each in mid-afternoon trade, traders said. That was lower than the top price earlier in the day, when D6 hit 15 cents. The credits traded at 10.25 cents on Monday.
Later in the session, prices eased to trade at 12 cents apiece, traders said.
The credits are used by oil refiners and importers to show compliance with EPA-mandated ethanol blending quotas for petroleum-based fuels. They are generated with every gallon of biofuel produced.
Prices have been under pressure since the U.S. Environmental Protection Agency granted the 31 small refinery biofuel waivers for 2018 earlier this month.
Reporting by Stephanie Kelly, additional reporting by Chris Prentice; Editing by David Gregorio and Dan Grebler
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