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Under the Renewable Fuels Standard (RFS), for non-exported transport fuels (diesel and gasoline), US refiners are required to blend in renewable fuels or purchase Renewable Identification Numbers (RINs) from blenders/other. These RINs are ultimately used to prove a refinery's RFS compliance. In response to high profile refinery complaints over the last year, the Environmental Protection Agency (EPA) has granted RFS waivers to a number of "small refineries," relieving these facilities from their obligation to purchase RINs. What impact will these exemptions have on RIN pricing? How many exemptions will it take to structurally effect the price of RINs? If the EPA exempts a significant amount of small refineries, could this precipitate a RIN price collapse?

In the the latest deal furthering consolidation in the UK fuel market, the Motor Fuel Group (MFG) announced its intention to acquire MRH, the country's largest independent forecourt operator, for £1.2 billion. If approved, this merger will create the UK's largest fuel retailer by site ownership with over 900 service stations under multiple brands. The deal would also see MFG rising to the second largest fuel retailer by volume, with combined sales of approximately 3.6 billion litres in 2017. The network operates at an average fuel throughput per site of around 4 million litres a year - in line with the UK average. But much of the value in this deal lies beyond the fuel pump. Our North West Europe Brent FCC gross refining margin fell sharply in March, driven by weak gasoline spreads, whereas Med Urals FCC gross refining margins remained flat. Retail fuel margins were stronger for gasoline in March, whereas diesel margins came under pressure from higher wholesale product prices.

Thailand's Department of Mineral Fuels launched the bidding round for the G1/61 and G2/61 offshore blocks. These blocks cover the producing Erawan and Bongkot gas developments, operated by Chevron and PTTEP respectively. Producing a combined 2.2 bcf per day, these blocks account for 70% of Thailand's domestic gas production, but the existing concessions are set to expire in 2022 and 2023. The blocks are being offered under a Production Sharing Contract regime – the first time Thailand has offered this type of contract.

A quest to meet a higher chemicals demand and feedstock security are behind this new wave of crude-to-chemicals sites in China. These sites take refinery and chemical integration to new heights, with high output of chemicals as the main value generator. These projects produce large amounts of co-products, gasoline and diesel, which will exert significant influence on the fuels market. These large and competitive projects increase the threat of closures for weaker standalone refineries.