Price Spikes and Forward Markets for Gasoline
Williams, Jeffrey and Jennifer Thompson
The forward market for wholesale gasoline in California proves to be sufficiently active and its prices sufficiently sensible to attract imports during local refinery outages. California prices spike principally because of the time needed to ship California-grade gasoline, about one month, which, not coincidentally, is the time frame in the forward market.
wholesale, gasoline, forward, market, California, trade, import, price
Williams, Jeffrey and Jennifer Thompson. 2003. "Price Spikes and Forward Markets for Gasoline." ARE Update 7(1): 7-10. University of California Giannini Foundation of Agricultural Economics.