The Trend Is Your Friend As we’ve learned, futures and spot prices are reactive creatures. NYMEX crude oil, gasoline and distillate contracts rise and fall based on any number of factors, from geopolitics to seasonal fluctuations to shifting fundamentals. The spot market generally reacts to what the NYMEX does. But, it also responds to its own set of forces, with weather events, refinery outages and infrastructure upsets factoring heavily. Keep an eye on futures pricing. Price spikes rarely occur in a vacuum. Arm yourself with the right tools that will provide visibility to the ups and downs of the NYMEX, so that local price changes don’t surprise you. Use that foresight to make, and change, your fuel buying decisions and strategies. The trend is your friend. That same insightfulness should be applied to your view of spot prices. As we will learn in the next section, the price influence chain extends from the refinery to the wholesale price level. The fuel buyer that can see what is going on at the NYMEX and then take the temperature of the spot market will be able to predict price increases or decreases that will impact his or her loads. Keep in mind that markets can be unpredictable at times and may leave you scratching your head. But a general understanding of the markets, and the trends that drive them, can give you that extra edge over your competitors and set your fuel-buying operation on higher ground. Fuel Buying 101, Part 1: Futures and Spot Markets | Oil Price Information Service (OPIS) © 2020, all rights reserved 12