CVR ENERGY, INC. (CVI)

[eFinanceMarkets]

$CVI Reuters: Icahn's CVR Energy starts unwinding biofuels bet

CVR Energy (CVI +2.9%) has begun buying biofuel credits for the first time in months, a sign that the Carl Icahn-led company is starting to unwind a massive short position in the biofuels market, Reuters reports.

The company has purchased millions of the RINs since late August, according to the report, and appears to have spread the purchases among different brokers, which would help keep it from attracting sellers looking to bid up the price.

CVR delayed buying credits for much of the past year in hopes prices would come down, building up a company-record $280M outstanding obligation, amid hopes the Trump administration would revamp U.S. biofuels policy in a way that shifts the blending burden off refiners such as CVR further down the supply chain to terminals.