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Gasoline Outpaces Oil's Gains

oil gas refinery energy
Olivier Lantendorffer | E+ | Getty Images

RBOB gasoline futures jumped as much as 1.8 percent in Monday's session to over $2.95 a gallon, outpacing oil's gains. The price surge is likely in response to a recent revision regarding credits that refiners can use to fulfill the federal government's renewable fuels mandate.

This weekend the Environmental Protection Agency updated its website regarding the amount of carryover RINS (renewable identification numbers). RINS are basically credits that refiners can use to meet renewable fuels compliance for 2013 and 2014.

RBOB represents the gasoline sold in the New York harbor spot market.

The EPA revised the amount of RIN carryover, meaning the amount of carryover credits in the bank, downward from 2.6 to 2.1 billion gallons.

Energy analyst Andy Lipow says this is a "significant" reduction as refiners will likely use most of the RIN credits allotted this year leaving hardly any "in the bank" for 2014.

(Read More: Potential Impact of RINS on Gasoline Prices)

—By CNBC's Sharon Epperson; Follow her on Twitter: @sharon_epperson

Disclaimer

  • Patti Domm

    Patti Domm is CNBC Executive Editor, News, responsible for news coverage of the markets and economy.

  • Bob Pisani

    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

  • Peter Schacknow

    Senior Producer at CNBC's Breaking News Desk.

  • Dominic Chu is a markets reporter for CNBC.

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