[bankwalker]

that's why futures markets exist ... so entities holding the actual product can hedge against prices moves while they're holding.

it's no coincidence that 1 futures contract for gasoline if for 44,000 gallons, the same as a tractor trailer holds.

if they hedged they could move the price at the pump immediately to match the spot price.

[mad_as_he$$]

“44,000 gallons, the same as a tractor trailer holds.”

Huh?

Gas weighs about 6 pounds a gallon. That would be a massive truck. Did you mean pounds?

[eastforker]

A tractor trailer tanker holds about 6500 gallons. Don’t know where you got that 44,000 number.