Weekly California R99 Market Insight

R99 head of the pipeline differentials in Los Angeles fell by 12¢/USG, while those in San Francisco fell by 7.5¢/USG to reflect fresh trade.

Renewable diesel production capacity is set to double by the end of 2027. With this anticipated growth over the coming years, it is critical to ensure fair and reflective values are provided for market participants. As the leading source of global renewable diesel pricing intelligence, this weekly market insight will shine a light on this relatively new and fast paced market and provide visibility to price indicators. 

-R99 at the head of the pipeline in California fell this week on fresh trade. 
-International supply of renewable diesel into California continues to be robust. Argus vessel tracking data indicates that in the next month, a maximum of 571,000 bl is set to be delivered into Los Angeles and Richmond from Singapore.
-Head of the pipeline R99 differentials have fallen in tandem with higher US Gulf coast indicative renewable diesel margins. Indicative margins have risen by 24.75¢/USG to around 180.4¢/USG in January so far.
-Contra Costa County this week approved an environmental impact review (EIR) required of Phillips 66 (P66) before starting 55,000 b/d of renewable diesel production at its Rodeo, California, refinery. The approval paves the way for Phillips 66 to start production this quarter at what will be the largest renewable diesel refinery on the US west coast.

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Argus launched independent price assessments for the California R99 spot market in November, to help drive enhanced visibility. Learn more about these prices. 

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