The Spot Fuel Market Spot fuel markets are where gasoline, diesel, jet fuel and other commodities get a physical price tag. SPOT MARKET Physical market, high volume, located at refinery hubs. Reacts to NYMEX and regional supply news. Spot purchases refer to fuel that is physically traded either on a pipeline or on the water (via barge or cargo). We call it spot because you negotiate for the fuel “on the spot.” Unlike the NYMEX, physical product literally changes hands in this market. Refiner X sells diesel to end-user Y to put into a tank at location Z. Spot deals are always done in bulk. That’s the essence of what makes it the spot market. No truck and trailer quantities here! Here’s an idea of scope: Pipeline deals are a U.S. Spot Markets © OPIS by IHS Markit minimum of 5,000 barrels (210,000 gallons) up to 50,000 barrels (2.1 million gallons). Fuel Buying 101, Part 1: Futures and Spot Markets | Oil Price Information Service (OPIS) © 2020, all rights reserved 8