*EPA PROPOSES 2014 RENEWABLE FUEL QUOTA BELOW LEGISLATIVE TARGET
*EPA PROPOSES RANGE OF 15 BLN TO 15.52 BLN FOR RENEWABLE FUELS
*EPA PROPOSAL SAID TO CALL FOR RANGE BELOW 2007 TARGETS
Looks like it we’re getting the EPA version of Universal Healthcare. Hit the brakes and put ‘er in reverse. This should play out bullish as we’re backing out RINs.
Bored? Happy reading: http://www.epa.gov/otaq/fuels/renewablefuels/documents/420f13048.pdf
This may bode bearish for gasoline in the near term as most are thinking that this is going to reduce the costs of RINs to gasoline. We take out that premium and life is good once again. We are still bullish gasoline though as the bottom of the cycle is getting set here. In a reversal of demand destruction when prices are too high, we’re seeing demand construction with gas prices so low.
This is a great time for lower gasoline prices as we’ll see more holiday travel and more shoppers driving to stores. We would also think that consumers are going to use the fuel savings to inject more money into the shopping season.