Renewable Fuel Equities Advance as US-Iran Tensions Boost RD Margins, TPH Says
Renewable diesel margins climbed to five-year highs as renewed US-Iran conflict lifted fuel markets, although higher feedstock costs pressured ethanol and soy crush economics, TPH Energy Research strategists said in a Monday note. Renewable fuel stocks gained 3.4% last week, outperforming the S&P 500's 1.2% rise, according to TPH. Green Plains (GPRE) advanced 8.9%, Darling Ingredients (DAR) gained 7.6%, and Bunge Global (BG) added 7.4%, while Aemetis (AMTX) fell 3.0% and Montauk Renewables (MNTK) declined 4.7%, the firm said. Higher diesel prices and stronger D4 Renewable Identification Number values lifted renewable diesel indicators by 34 cents to 75 cents per gallon, with renewable diesel margins based on corn oil and white grease reaching fresh five-year highs, TPH Energy said. A bullish World Agricultural Supply and Demand Estimates report pushed corn and soybean prices higher, reducing Midwest ethanol margins by 10 cents per gallon and soy crush margins by $5 per metric ton. Among renewable fuel companies, only Neste, Clean Energy Fuels (CLNE), Montauk Renewables, OPAL Fuels (OPAL) and Green Plains traded below their respective three-year forward enterprise.
Renewable diesel margins climbed to five-year highs as renewed US-Iran conflict lifted fuel markets, although higher feedstock costs pressured ethanol and soy crush economics, TPH Energy Research strategists said in a Monday note.
Renewable fuel stocks gained 3.4% last week, outperforming the S&P 500's 1.2% rise, according to TPH.
Green Plains (GPRE) advanced 8.9%, Darling Ingredients (DAR) gained 7.6%, and Bunge Global (BG) added 7.4%, while Aemetis (AMTX) fell 3.0% and Montauk Renewables (MNTK) declined 4.7%, the firm said.
Higher diesel prices and stronger D4 Renewable Identification Number values lifted renewable diesel indicators by 34 cents to 75 cents per gallon, with renewable diesel margins based on corn oil and white grease reaching fresh five-year highs, TPH Energy said.
A bullish World Agricultural Supply and Demand Estimates report pushed corn and soybean prices higher, reducing Midwest ethanol margins by 10 cents per gallon and soy crush margins by $5 per metric ton.
Among renewable fuel companies, only Neste, Clean Energy Fuels (CLNE), Montauk Renewables, OPAL Fuels (OPAL) and Green Plains traded below their respective three-year forward enterprise.