[RE]fuel Report Market Commentary

The approaching end-of-the-line for Year 9 left limited influence on prices in a malaise that extended to much of the RTFC market. At the end of the week, bids and offers remained in a tight, unyielding range with offers on Year 10 and Year 11 heard in much the same region as in the previous week - 21.7 p for Year 10, a slightly lower 22 p for Year 11.

Census introduced a Year 11 assessment, coming in below the offer at 21.8 p, while the Year 10 was unchanged at 21.5 p.

Demand remained hesitant, however, with blending still continuing apace and limited incentive to dip into the UK certificate market evident.

Across the wider energy complex, diesel continued to ride the fortunes of crude with prices firming through the week, dragged higher by underlying heating demand and geopolitics lending support to the crude complex.

Against that, biodiesels fared less well although RME has seen strong support opening a substantial premium to FAME 0 as seasonal factors saw the twin fuels moving in opposite directions. FAME 0, seasonally unloved as Europe enters its peak winter demand period, remains under pressure as a steady supply of SME hits Europe from Argentina.

The superior cold properties of RME mean it is in demand, with trading sources seeing the differential between the two grades standing at $170/mt – a high even by seasonal standards.

Census also introduced the first RTFC-RHI differential, both on a pence/KWh and a pence/litre basis, to provide greater visibility for biomethane producers on which scheme is paying most for their biomethane.