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Oil majors are planning to convert California refineries to renewable diesel and other biofuels production. The shift is linked to the state's Low Carbon Fuel Standard and an expected long-term decline in petroleum fuel consumption, and momentum is building for a national LCFS.
Conversion of refinery capacity to renewable diesel adds demand for vegetable oil feedstocks such as soybean oil. The national LCFS push could widen that demand beyond California.
carbon-pulse.comMatthew LithgowSep 17, 2020After 842 past bullish policy events, Soybean Oil moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
After 187 past neutral policy events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -4.0% to +3.5%), and +0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
