DTN Exchange Helps Suppliers Keep Pace With Volatile Marketplace
Suppliers can link fuel prices to the NYMEX RBOB Gasoline Contract
as the industry shifts to ethanol-blended fuel
Now sellers on the DTN Exchange can link their fuel prices to the NYMEX RBOB Gasoline futures contract – an important first for the ethanol-blended fuel – making a smooth transition through this industry change from MTBE. As the industry completes it phase out of MTBE and shifts to ethanol-blended fuel, the benchmarking of fuel prices will transition from the NYMEX Unleaded Gasoline contract to the NYMEX RBOB contract. The RBOB contract conforms to industry standards for gasoline blended with denatured fuel ethanol and will become the benchmark for both conventional and ethanol blended gasoline prices.
“Working with day-old, or even hours-old prices in today’s volatile markets can have a major impact on profitability. Leveraging prices that move in sync with the market, along with electronic transaction data from the DTN Exchange, provides economies of scale for growing businesses,” said Robert Gordon, chief executive officer, DTN. “Linking prices to the NYMEX RBOB contract on the DTN Exchange helps our customers gain a competitive edge through this industry transition.”
DTN Exchange is the industry’s premier online trading platform that maximizes profitability in today’s highly volatile fuel markets. Sellers who utilize the DTN Exchange can link proprietary pricing formulas to real-time tick averages from the NYMEX for “live” prices that fluctuate with market conditions. Electronic transaction data automatically integrates into back-office systems to speed contract and billing processes.
WIN-WIN FOR SELLERS AND BUYERS
DTN Exchange helps sellers easily manage prices across terminals with
the click of a mouse throughout market moves during the day. Because live
prices have the profit margin built right into the formula, they can move
up and down throughout the day without risk of losing value. Or, if sellers
prefer, they can create a flat price that doesn’t track with the
index, but can be changed throughout the day. DTN Exchange also helps
fuel sellers better manage supply and improves forecasting.
Access to DTN Exchange pricing information means buyers and sellers can conduct business 24-hours a day, enabling market orders during the day and bids during after-hours. Buyers on the DTN Exchange can purchase fuel at the speed of the Internet – reducing the inefficiencies and lag time associated with multiple phone calls with sellers. Both buyers and sellers on the DTN Exchange can beat market averages and optimize their margins, while effectively managing their risk. DTN Exchange is the most efficient, cost-effective way to buy and sell fuel in today’s volatile market.
Click here for a FREE demo of the DTN Exchange.
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