Global energy and commodity price reporting agency Argus has released daily renewable diesel prices in California.
This service joins the company's existing range of renewable diesel pricing, which covers Asia, Europe and the US West Coast, as reported by Argus on November 14.
The company reported that it collected bids, offers and transactions from multiple market participants on Kinder Morgan's pipeline systems in Los Angeles and San Francisco to evaluate Argus' four new prices for California.
Argus evaluated the spreads against Nymex's ultra-low sulfur diesel (ULSD) futures and the California Air Resources Board's ULSD. However, the costs charged to the holder of the diesel fuel position at the terminal included these differentials. They applied to batches of at least 5,000 barrels transported at any time during a given month.
“Adrian Binks, president and chief executive of Argus Media, seeks views from market participants. The aim is to provide transparency to the industry’s rapidly growing market.”
“To operate efficiently, the market needs clear and accurate prices, based on actual transactions and other indications of buying and selling interest.”
Argus has seen exponential growth in the renewable diesel market. In the second quarter of 2023, this type of diesel represented 54% of total consumption in California, as indicated in the report.
Source: Oils & Fats International
