Fossil fuel price surge and high demand lift biofuel production margins on both sides of the Atlantic in September

Fastmarkets10-05

Volatility driving underlying fossil fuel prices higher since late February – a core basis for physical biofuel prices – alongside more limited movements for feedstock inputs has contributed to very ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2673701700?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-10-05 12:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2673701700","market":"us","top_or_hot":-1,"title":"Fossil fuel price surge and high demand lift biofuel production margins on both sides of the Atlantic in September","media":"Fastmarkets","content":"<div>\n<p>Volatility driving underlying fossil fuel prices higher since late February – a core basis for physical biofuel prices – alongside more limited movements for feedstock inputs has contributed to very ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/fossil-fuel-price-surge-and-high-demand-lift-biofuel-production-margins-on-both-sides-of-the-atlantic-in-september/\">Source Link</a>\n\n</div>\n","source":"fastmarkets_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Fossil fuel price surge and high demand lift biofuel production margins on both sides of the Atlantic in September</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFossil fuel price surge and high demand lift biofuel production margins on both sides of the Atlantic in September\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-10-05 12:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fastmarkets.com/insights/fossil-fuel-price-surge-and-high-demand-lift-biofuel-production-margins-on-both-sides-of-the-atlantic-in-september/><strong>Fastmarkets</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Volatility driving underlying fossil fuel prices higher since late February – a core basis for physical biofuel prices – alongside more limited movements for feedstock inputs has contributed to very ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/fossil-fuel-price-surge-and-high-demand-lift-biofuel-production-margins-on-both-sides-of-the-atlantic-in-september/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4112","symbol_name":"金融交易所和数据","start_time":0,"source_url":"https://www.fastmarkets.com/insights/fossil-fuel-price-surge-and-high-demand-lift-biofuel-production-margins-on-both-sides-of-the-atlantic-in-september/","article_id":"2673701700","we_media_id":null,"thumbnails":[],"rights":{"source":"fastmarkets_highlight","url":"https://www.fastmarkets.com/insights/fossil-fuel-price-surge-and-high-demand-lift-biofuel-production-margins-on-both-sides-of-the-atlantic-in-september/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2673701700","pubTimestamp":1791172800,"columns":[],"sourceInfo":{"source_id":"fastmarkets_highlight","name":"Fastmarkets"},"weMediaInfo":null,"summary":"Volatility driving underlying fossil fuel prices higher since late February – a core basis for physical biofuel prices – alongside more limited movements for feedstock inputs has contributed to very high margins for biodiesel and renewable diesel/hydrotreated vegetable oil (HVO) producers. High demand and chokepoints in some markets have further contributed to sharp price growth.","collect":0,"end_time":0,"defaultTopTitle":"fastmarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4112":"金融交易所和数据","IXC":"全球能源业ETF-iShares","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","PXJ":"Invesco Oil & Gas Services ETF","FTXN":"First Trust Nasdaq Oil & Gas ETF","XES":"SPDR S&P Oil & Gas Equipment & Services ETF","XOP":"油气开采指数ETF-SPDR S&P","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","FBZ":"First Trust Brazil AlphaDEX Fund","OILK":"ProShares K-1 Free Crude Oil ETF","DRIP":"Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF","UCO":"二倍做多彭博原油ETF","ERX":"二倍做多能源ETF-Direxion","LU0124676726.USD":"AB SICAV I - SUSTAINABLE US THEMATIC PORTFOLIO \"A\" (USD) ACC","UGA":"United States Gasoline Fund LP","LU1153585028.USD":"BGF GLOBAL LONG-HORIZON EQUITY  \"A4\" (USD) INC","OILT":"Texas Oil Index ETF","IEO":"iShares Dow Jones U.S. Oil & Gas","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","OILU":"MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN","BNO":"美国布伦特原油基金有限合伙企业","FOSL":"福斯尔","XTN":"SPDR S&P Transportation ETF","XLE":"SPDR能源指数ETF","IYT":"运输指数ETF-iShares","DRLL":"Strive U.S. Energy ETF","ICE":"洲际交易所","FUE":"ELEMENTS Linked to the MLCX Biofuels Index Total Return","LU0256863902.USD":"ALLIANZ US EQUITY \"AT\" (USD) ACC","BWET":"BREAKWAVE TANKER SHIPPING ETF","LU2237957811.SGD":"NIKKO AM GLOBAL EQUITY \"F\" (SGD) ACC","USE":"USCF Energy Commodity Strategy Absolute Return Fund","PXE":"Invesco Energy Exploration & Production ETF","DBO":"原油ETF-PowerShares","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","VDE":"Vanguard Energy ETF","DIG":"二倍做多美国油气指数","LU2023250843.SGD":"Allianz Thematica Cl AT Acc H2-SGD","GUSH":"Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X ETF","USL":"United States 12 Month Oil Fund LP","USO":"美国原油ETF","LU0072461881.USD":"BGF US BASIC VALUE \"A2\" ACC","DUG":"二倍做空石油与天然气ETF(ProShares)","DBC":"商品指数ETF-PowerShares DB","OIH":"石油服务ETF","SCO":"二倍做空彭博原油指数ETF","USOI":"ETRACS Crude Oil Shares Covered Call ETN","BCDF":"Horizon Kinetics Blockchain Development ETF","WTIU":"MICROSECTORS ENERGY 3X LEVERAGED ETN","DBE":"能源商品ETF-PowerShares"},"translate_title":"9 月份化石燃料价格飙升和高需求提升了大西洋两岸生物燃料生产利润","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FTXN":0.75,"ERX":0.75,"USO":0.75,"BWET":0.75,"OILK":0.75,"UGA":0.75,"OILU":0.75,"ICE":1,"IYT":0.75,"IEO":0.75,"DBE":0.75,"OIH":0.75,"DBO":0.75,"USOI":0.75,"IXC":0.75,"DBC":0.75,"GUSH":0.75,"DRIP":0.75,"BCDF":0.6,"USE":0.75,"XES":0.75,"PXE":0.75,"DIG":0.75,"SCO":0.6,"XLE":0.75,"PXJ":0.75,"OILT":0.75,"USL":0.75,"XOP":0.75,"BNO":0.75,"VDE":0.75,"FOSL":1.5,"WTIU":0.75,"UCO":1,"FBZ":0.75,"FUE":0.65,"DUG":0.75,"XTN":0.75,"DRLL":0.75},"content_text":"Volatility driving underlying fossil fuel prices higher since late February – a core basis for physical biofuel prices – alongside more limited movements for feedstock inputs has contributed to very high margins for biodiesel and renewable diesel/HVO producers. High demand and chokepoints in some markets have further contributed to sharp price growth.\nIn the past week, key exchange-based diesel prices have fallen from recent highs but remain at very elevated levels, with reports in the wider market highlighting record high diesel crack spreads to crude oil, indicating a tighter supply of middle-distillates compared to crude.\nOn the other hand, key vegetable oil and waste-based feedstocks have shown more modest rises – often influenced themselves by the rise in fossil fuel prices – creating wide spreads between the finished fuel and the feedstock, signaling strong production margins.\nHowever, supply issues resulting from low Rhine levels in Germany, and a preference for imports from Europe from some buyers in the US amid plant shutdowns to meet a record high RVO mean that production rates are lagging in some areas.\n“Margins are very good because of the high fossil [fuel] prices as a result of the Strait of Hormuz crisis, and also prices for biodiesel are high because of low Rhine levels, export demand from the US and EU demand in the third and fourth quarters,” a European trader told Fastmarkets.\nEurope\nThe past month has seen the three key biodiesel grades in Amsterdam-Rotterdam-Antwerp (ARA) – UCOME, RME and FAME 0 – reach the highest levels since September 2022, after Russia’s invasion of Ukraine earlier in that year, and a wave of demand for RME from April 2022 which in turn lifted the other grades.\nBiodiesel, UCOME Outright, fob ARA reached a recent high of $2,007 per tonne on September 16, Biodiesel, RME Outright, fob ARA $1,956.50 per tonne on September 18, and Biodiesel, FAME 0 Outright, fob ARA $1,894 per tonne on September 3.\nThese were up by 35%, 33%, and 36% respectively year on year, with values for all three grades remaining at similarly high levels throughout September.\n\nUnderlying Oil, ultra low sulfur diesel, fob ARA prices reached $1,567 per tonne on September 15 at 4:30pm, the highest level since Fastmarkets began listing the exchange traded price on October 18, 2017.\nThis was up by more than 6% on the day, by 7% on the week, and by close to 125% year on year, highlighting the volatility in fossil fuel prices caused in large part by the US war with Iran and closure of the core Strait of Hormuz shipping pathway.\nPrices have since fallen to $1,455.25 per tonne as of October 1, still more than double the $693.25 per tonne a year earlier.\n\nThis price has been more of a factor than premiums in determining outright prices for biodiesel and HVO in September, with these premiums often lower than a year earlier to counter the rise in gasoil. By contrast, key European feedstock prices have risen more modestly, with Used cooking oil, ISCC, ddp Northwest Europe prices for September 25 up by around 13% year on year and Rapeoil FOB DM Rotterdam prices for September 25 – the key vegetable oil feedstock – up by close to 15% year on year.\n\nAdditionally, while HVO prices have diverged in recent weeks – with Renewable Diesel, HVO (POME), fob ARA rising but Renewable Diesel, HVO (UCO), fob ARA weaker for most of the month as demand for product made from advanced feedstocks rises in order to meet key sub-mandates – both show high gross margins, the spread between the outright product and the key feedstock.\nData from Eurostat via Global Trade Tracker (GTT) showed that the EU exported 44,500 tonnes of biodiesel to the US in the first six months of 2026, up from less than 1,000 tonnes in the whole of 2025.\nWhile this still falls short of US feedstock imports, the rise in European imports has been attributed to the high RVO set by the US.\nExporters were key producers of crop-based biodiesel, according to several sources spoken to by Fastmarkets, including SME which is increasingly difficult to sell into the EU owing to effective bans in key road fuel markets such as Germany, France and the Netherlands.\nNorth America\nIn the US, Intercontinental Exchange (ICE) Gasoil’s proxy, NYMEX Heating Oil, is also at near-record highs, with trade for the near-month contract on NYMEX – NYMEX NY Harbor Ultra Low Sulfur Diesel (Heating Oil) M1 – closing at the highest level in September at $5.26 per gallon (~$1,656.50 per tonne) on September 15.\nThis compares with $4.28 per gallon a month earlier and $2.33 per gallon a year earlier.\nIn terms of biofuels, Fastmarkets Biodiesel B100 index, fob US price reached $7.50 per gallon on September 16, the highest level since June 27, 2022, and Renewable Diesel, del Los Angeles prices – with credits and incentives levied – hit a midpoint of $5.31 per gallon on September 15, the highest level since Fastmarkets began the assessment on June 19, 2020.\n\nFurthermore, the bean oil-heating oil spread (BOHO) – used as a guide by US biodiesel and renewable diesel producers to gauge whether to produce biodiesel or renewable diesel, in part owing to soybean oil’s dominance as the core feedstock in North America – has been below the three-year average, according to Fastmarkets data, indicating high profitability for producers.\nLike in Europe, core waste-based feedstock prices have been comparatively less volatile, with UCO values barely moving in August despite Renewable Identification Number (RIN) values showing a lot of volatility as the US Environmental Protection Agency (EPA) weighed up exemptions to small refineries from the need to blend biofuels.\nFeedstock prices declined further in September on the back of low demand, partly resulting from extensive plant maintenance with a number of biodiesel and renewable diesel plants idled, creating obstacles for producers to take advantage of favorable production economics. While September has shown strong demand as buyers seek to meet a record high Renewable Volume Obligation (RVO), demand for loading in the fourth quarter and beyond is starting to look weaker.\nIt remains unclear whether this lack of buying is due to buyers being adequately stocked, or due to expectations that underlying fossil fuel prices and crude may start to decline if negotiations between the US and Iran over an end of hostilities improve, or if other developments surrounding additional fossil fuel supply could cause a dip in key heating oil and gasoil prices, weighing on biofuel prices.\nIn September, the rise in biofuel prices – buoyed by underlying fossil diesel values – has prompted debate around whether to provide relief from certain Renewable Fuel Standard (RFS) provisions, with biofuel interest groups pushing back against this.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.50.1","shortVersion":"4.50.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2673701700","isCrawlerRequest":true}