The PRIMA California LCFS Index finished Wednesday at a new historical high of $83.50, with buyers pushing their best bid to $82 for Q4 transfer and $81 for Q1 transfer. Offers kept to the previous day’s level at $85. LCFS prices have now stood above $80 since October 20 with the week’s average price sitting at $82.50.
California October refinery fuel output remains much slower than month ago levels. Weekly state refinery production data showed California CARB ULSD refinery output gained 6.2% WoW, still languishing 16% below month ago levels. Total production of gasoline in California sits at 28.6mn bl so far in October, down 7.6% MoM.
Valero said Wednesday the firm expects to see healthy gasoline demand through the fourth quarter. Valero meanwhile continues to evaluate renewable diesel expansion opportunities after low ethanol prices drove Q3 ethanol operating profits down 75%. Valero and renderer Darling Ingredients currently operate a 11,000b/d renewable diesel plant at Norco, LA.