What is it?
The differential between the S&P Global Platts assessment of the price of ultra low sulfur diesel that meets CARB standards delivered in Los Angeles, and the price of Dated Brent, the world’s benchmark crude. All prices normalized to dollars per barrel. This specification does meet the more stringent CARB specifications for ULSD.
Who is interested?
Any participant in the market that has an exposure to the price of diesel and observes how diesel is moving on its own or relative to the crude oil market, in this case represented by the price of CARB ULSD in Los Angeles compared to dated Brent.
What does it tell me?
The number takes the daily assessment of CARB ULSD in Los Angeles, converts it to a price of dollars per barrel and subtracts the price of dated Brent from it. The end number is displayed as a graph. A rising number indicates the physical market for this product is strengthening compared to crude. A declining market indicates the physical market for this product is weakening compared to crude. The actual Platts assessment for the inputs is not available through this series and must be purchased from S&P Global Platts.