Baker & O'Brien, Inc.

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U.S. Refining Margins Increase - PADDs 2 and 5 Lead the Way

Special Topic: Slamming into the Blend Wall - How High Can RIN Values Go?

May 6, 2013

Baker & O’Brien’s first quarter 2013 PRISM™ analysis reports generally higher U.S. refining margins, except for PADD 4, which declined due to seasonal effects. Bucking the general trend were coking refineries which underperformed sweet crackers. Our special topic this quarter relates to the skyrocketing prices for renewable identification numbers (RINs), and the likelihood for prices to increase further in 2014 if the Renewable Fuel Standard is not amended.

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