# Renewable diesel glut hits US refiner profits, threatens nascent industry | Reuters

> Renewable diesel producers face an oversupply that is squeezing US refiner margins. Large producers are willing to accept lower margins to outlast smaller competitors. Imports under the Biomass-based Diesel Blender's Tax Credit are expected to rise until the credit is replaced by the Clean Fuel Production Tax Credit next year.

- Date: 2024-05-13 · published 2024-05-13T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/15212-renewable-diesel-glut-hits-us-refiner-profits-threatens-nascent-industry-reuters
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Excess renewable diesel output and tax-credit-driven imports weigh on demand for soybean oil and other fats and oils used as feedstock. The planned switch to the PTC should discourage imports and modestly support domestic feedstock demand.

## Read by commodity

- SBO: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2018-05-22 | [EPA Refinery Waivers, Tax Credit Debate Beset Biodiesel Industry](https://feedsoft.ai/events/64923-epa-refinery-waivers-tax-credit-debate-beset-biodiesel-industry.md) | -0.7% | -8.2% |
| SBO | 2023-10-27 | [D4 Production, Renewable Diesel, and RINs - The Jacobsen](https://feedsoft.ai/events/15269-d4-production-renewable-diesel-and-rins-the-jacobsen.md) | -0.7% | +6.4% |
| SBO | 2023-11-20 | [Feature: US RINs complex under pressure while renewable diesel helps RVO mandates \| S&P Global](https://feedsoft.ai/events/15261-feature-us-rins-complex-under-pressure-while-renewable-diesel-helps-rvo.md) | +1.2% | -1.4% |
| SBO | 2024-05-27 | [The Road Ahead: Renewable Diesel & SAF](https://feedsoft.ai/events/30342-the-road-ahead-renewable-diesel-and-saf.md) | +1.7% | +2.0% |
| SBO | 2024-02-28 | [Renewable diesel boom slows; industry eyes IRA, Canada for relief \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/15234-renewable-diesel-boom-slows-industry-eyes-ira-canada-for-relief-agri-pulse.md) | -0.0% | +7.7% |

## Sources

- reuters.com: https://www.reuters.com/markets/commodities/renewable-diesel-glut-hits-us-refiner-profits-threatens-nascent-industry-2024-05-13/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.