Category Archives: Renewables

Who Squeezed the JKM February 2021 swap ? “The Economics of Commodity Market Manipulation”

Posted on by

0

The Economics of Commodity Market Manipulation
During February the position of a long arbitrage JKM holder is 7X to 8X times its delivery equivalent cost to Japan. You clearly see that blue line spiked above the pink line. This is how we detect the presence of a manipulation in this benchmark. Continue reading →

Economics Fundamentals of Ethanol Blending in the United States

Posted on by

0

Recently, a solid MISPRICING has appeared in the RIN market with D5 RIN (the RIN for advanced cellulosic ethanol have become expansive vs E100 and Gasoline( shortly after the EPA issued RFS and during pending changes for Brazil tariff on foreign imports). A major U.S IB has brought Brazil Ethanol to blend ethanol to generate the RIN, then separate it and cash-out the credit attached. Continue reading →