The Renewable Fuels Association says U.S. regulators and environmental officials should probe for possible manipulation in the market for U.S. biofuel credits. The comments come after prices for biofuels credits “surged for unknown reasons,” according to RFA. In a letter this week, the Association encouraged the Commodity Futures Trading Commission and the Environmental Protection Agency to determine “whether certain parties may be exerting undue influence on prices or otherwise engaging in manipulative practices.” RFA says the association is concerned about “recent irregular activity and volatility” in the market for Renewable Identification Numbers, or RINs. Prices climbed about 30 percent since mid-May. Last week, prices of RINs neared three-year highs as traders raced to buy the credits. In March, the agencies signed a memorandum of understanding regarding RINs, under which the CFTC agreed to help EPA conduct investigations into possible fraud and market abuse.
Source: NAFB News Service