TradeAlmanac
Sign in

Grade differential

The persistent price gap between crude grades, reflecting quality and the cost of getting the oil to market.

How to read the number

It is the differential, not the world quotation, that decides how much a particular exporter receives for its oil.

When the metric lies

It moves faster than the benchmark and is not published by any exchange: price agencies estimate it from surveys of participants, and the figures arrive late.

Also known as: crude discount

Related terms