What is a spot market?
“Spot” purchases refer to fuel that physically changes hands at a refinery gate or other major pricing hub for delivery on a pipeline or via barge or cargo. Deals are always done in bulk, typically 5,000 barrels (210,000 gallons) to 50,000 barrels (2.1 million gallons).
The spot market is a critical link in the price influence chain because it sets the basis for cost-plus formula deals between suppliers and end users. It also forms the rationale for wholesale fuel price moves every day at 6pm at wholesale racks across the U.S. – which then impacts price increases or decreases at the retail pump.
OPIS is the oil industry’s selected spot pricing benchmark
OPIS provides pricing for spot refined products, renewable fuels, LPG and refinery feedstocks. Oil, gas and fuel markets markets chose OPIS as its spot benchmark for:
- U.S. West Coast refined products – our West Coast Spot Market report is the definitive recourse for daily gasoline, diesel and jet fuel prices. Real-time price changes are tracked and displayed live on the OPIS Spot Ticker.
- U.S. NGLs & LPG – spot prices for propane, butane, ethane and natural gasoline in the U.S. market are pegged to OPIS, making our prices essential for conducting business in U.S. LP markets.
- U.S. RINs and ethanol – daily ethanol and biofuels pricing, news and analysis informs of changes that influence pricing as well as regulatory and legislative developments. We also provide RINs and carbon credit prices for parties obligated under climate change legislation and the RFS2.
- Refinery feedstocks – the OPIS International Feedstocks Intelligence Report is the key pricing source for VGO, naphtha and light cycle oil in international feedstocks markets.
In addition, OPIS has a continuous record of successful third-party audits certifying our adherence to IOSCO (International Organization of Securities Commissions) principles of transparency and objectivity.