EPA grants 29 of 34 refinery biofuel waivers, most since 2017, as Brent hits $92
The EPA approved 29 of 34 small refinery exemptions for the 2025 compliance year, letting those refiners out of their Renewable Fuel Standard blending obligations. That is 1.76 billion RIN credits waived, the most since 2017. The agency paired the decision with a plan to reallocate the exempted gallons instead of letting them vanish.
The reallocation
Reallocation is the part fuel buyers should watch. Normally an SRE just erases that blending demand, which softens RIN prices and cuts the value of blending ethanol and biodiesel. EPA says it will spread the exempted volumes across the refiners who did not get a waiver, keeping total demand roughly whole. For a blender, that is the difference between a soft RIN market and a firm one.
Geoff Cooper, head of the Renewable Fuels Association, counted 34 petitions and called the outcome a loss: the agency "approved 29 of those 34 petitions and let 29 oil refineries escape their blending obligations under the Renewable Fuel Standard." Rep. Zach Nunn of Iowa pushed the other way and took credit for the reallocation. "I wasn't going to stand by while Washington let that demand vanish," he said.
Crude at $92
Brent gained 1.7% to $92 a barrel on Sept. 1, after a 2.7% rise the day before. The move is fear over renewed violence in the Iran war, which had been quiet for more than a month. Higher crude feeds straight into your rack price, and two up days running is enough to show at the terminal.
The Ust-Luga fire
A Ukrainian drone attack hit Russia's Ust-Luga oil export terminal on the Baltic overnight, sparking a fire that has since been put out with no casualties. Russia shot down 52 drones. Ukraine keeps targeting Russian refineries and export docks, and every hit on export capacity tightens the global barrel that sets the price you pay.
Chevron in Venezuela
Chevron is close to a deal to operate two large Orinoco Belt fields in Venezuela's Carabobo region, billions of barrels of heavy crude, part of a Trump administration push to raise Venezuelan output. More heavy sour supply would help US Gulf refiners built to run it. Nothing is announced yet.
What to watch
Watch how EPA actually splits the reallocated gallons across the non-exempt refiners, and whether RIN prices firm up once the mechanics are public. Watch Brent: it could ease if the Iran fighting stays contained, or firm further if strikes keep hitting Russian export capacity. And watch whether the Chevron Venezuela deal gets signed, since real Orinoco barrels would matter more to Gulf margins than anything on the RIN side.