Tuesday, October 13, 2026

EPA proposes 100% reallocation of RFS volumes lost to refinery exemptions

Crack spreads are doing the heavy lifting again — diesel's triple-digit crack is basically carrying the complex while gasoline chops around on Middle East risk premium fades. Meanwhile, Washington just handed biofuels the news it's been begging for all year.

EPA's proposal to fully reallocate 2025 renewable fuel volumes lost to small refinery exemptions is the day's dominant policy story, drawing praise from biofuel groups, farm-state lawmakers, and NOPA while shifting compliance costs onto refiners that didn't receive exemptions. Markets are mixed: gasoline futures are down 2% as oil slips on OPEC's flagged Saudi supply rebound and weak demand signals, while ULSD has reversed early losses to trade higher, consistent with diesel's crack spread running far above gasoline's ($101.71 vs $46.39/bbl). Elsewhere, shipping and insurance costs tied to tanker risk are pressuring product flows, and GasBuddy notes a "fragile calm" at the retail pump even as retail diesel sits near $6.20/gal.

Gasoline
$3.396/gal
unch
ULSD
$4.713/gal
unch
WTI
$96.24/bbl
unch
Gas crack
$46.39/bbl
unch
Diesel crack
$101.71/bbl
unch
Retail gas
$4.50/gal
unch
Retail diesel
$6.20/gal
unch
Change vs. prior data point. Spot prices & single-product cracks vs WTI, from EIA data ↗

📈 Markets & Prices

Refining Margins, Tanker Attacks, And OPEC Growth Shape Energy Outlook
Gasoline futures fell about 2% to start Tuesday's session while ULSD reversed course to trade up 3 cents after an overnight drop, amid tanker attack and OPEC growth concerns.
TACenergy Market Talk · original source ↗
Oil Slides as OPEC Flags Saudi Supply Rebound, Weak Demand
Oil futures retreated Tuesday as OPEC flagged a Saudi supply rebound and weak demand, following a three-day rally driven by Middle East fighting.
DTN/Progressive Farmer · original source ↗
Russia’s Diesel Deal Cuts Crude Prices, Not Diesel Costs
Russia's diesel deal is pressuring crude prices rather than diesel costs; seaborne diesel exports fell 20% year-over-year while Gulf Coast crack spreads averaged $107.90/bbl in September.
cruxinvestor · original source ↗

🏭 Refining & Supply Ops

Middle East supply risks overshadow Russian diesel deal
The US-Russia energy deal aims to boost Russian diesel exports and halt infrastructure attacks, but market reaction remains uncertain amid ongoing conflict.
Oil & Gas Journal · original source ↗
OPEC+ warns soaring shipping, insurance costs impede oil flows
OPEC+ ministers warned that surging shipping and insurance costs, now exceeding a third of some commodity values, are disrupting energy flows and fueling inflation.
Oil & Gas Journal · original source ↗
GasBuddy Flags Fragile Calm at the Pump
GasBuddy flagged a 'fragile calm at the pump' across the United States.
Rigzone · original source ↗

🏛️ Policy & Credits

US EPA proposes 100% reallocation for additional 2025 SRE volumes
EPA is proposing two approaches for 2025 SRE reallocation, both featuring 100% reallocation of waived volumes; biofuel and ag groups welcomed the move.
Biobased Diesel Daily · original source ↗
EPA proposes 100% reallocation for refinery biofuel breaks
EPA's proposed 100% reallocation of refinery biofuel exemption volumes aims to restore farmer demand while shifting compliance costs to refiners that lacked exemptions.
Transport Topics · original source ↗
EPA proposes full reallocation of renewable fuel volumes lost to refinery exemptions
EPA released a draft rule Tuesday that would fully reallocate renewable fuel volumes lost through small refinery exemptions.
KGAN · original source ↗
Lawmakers push for reallocation of lost renewable fuel volumes
A bipartisan group of 39 lawmakers is urging the Trump administration to restore renewable fuel volumes lost through small-refinery exemptions under the RFS.
KMA Radio · original source ↗
NOPA applauds congressional push for timely supplemental RFS rule
NOPA's CEO praised the congressional push for a timely supplemental RFS rule and plans to submit comments ensuring full reallocation of waived gallons.
Biobased Diesel Daily · original source ↗
IRFA appreciates Iowa delegation’s call to restore waived RFS gallons
Iowa's congressional delegation is calling on EPA to act quickly to fully restore lost renewable fuel volumes.
Biobased Diesel Daily · original source ↗
Reps. Smith, Budzinski lead letter urging Trump administration to support America’s biofuel industry
Reps. Smith and Budzinski led a letter urging the administration to propose a supplemental RFS rule by Oct. 16 preserving volume requirement integrity.
Biobased Diesel Daily · original source ↗

🏢 Companies & Earnings

XCF Global (Nasdaq:SAFX) Announces $12M+ in Gross Product Sales and Shipments of 1.4 Million Gallons of Renewable Diesel in September
XCF Global reported over $12M in gross product sales and shipment of 1.4 million gallons of renewable diesel in September as its Reno facility continues ramping up.
USA TODAY · original source ↗