Who Uses the CME Division Unleaded Gasoline Contract?
The CME Division Unleaded Gasoline contract is of benefit to most sectors of the petroleum industry including refiners, blenders, importers, distributors, and integrated marketers, availing them of the opportunity to protect their cash market positions from changes in market pricing. Commercial users, such as fleet operators, can also use the unleaded futures contract to hedge against price risk in meeting their fuel procurement needs, and to help stabilize procurement costs. Speculators in the futures markets fulfill several vital economic functions by facilitating the marketing of basic commodities and the trading in financial instruments. Speculators do not create risk; they assume it in the hope of making a profit. In a market without these risk takers, it would be difficult, if not impossible, for hedgers to agree on a price because the sellers (or short hedgers) want the highest price, while the buyers (or long hedgers) want the lowest possible price. In addition to assuming risk
