<p>Businesses and people are forward looking. If people anticipate tomorrow there will be high price of oil their today's demand for oil will increase which will increase the price of oil today. In addition business are forward looking if they expect their cost to increase from next month and if they know that people are more likely to buy oil now because they anticipate higher prices, they can rise prices in advance.</p>

CC BY-SA 4.0
2022-03-24T12:51:42.340Z
End consumers lack sufficient storage facilities to cause price jumps when it comes to gasoline. Their consumption is dictated by their real world needs. Maybe the distributors are the main reason by increasing their demand upstream but even then the sudden increase instead of a smooth one seems opportunistic.
Averroes
CC BY-SA 4.0
2022-03-23T17:31:45.390Z
2022-03-23T17:31:45.390Z
1muflon1
<p>The commodities market is , for the most part, a forward one. How come then prices of gasoline in gaz stations jump almost overnight whenever a geopolitical tension arises?</p>

<supply-and-demand><financial-markets><commodities><oil>
Fuel prices spot vs forward
Averroes
# Fuel prices spot vs forward

(Asked by: username_0 on 2022-03-23)

The commodities market is , for the most part, a forward one. How come then prices of gasoline in gaz stations jump almost overnight whenever a geopolitical tension arises?

**Tags:** supply-and-demand, financial-markets, commodities, oil


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## 1 answers

### Answer by username_1 on 2022-03-23. Score: 1 | Accepted answer

Businesses and people are forward looking. If people anticipate tomorrow there will be high price of oil their today's demand for oil will increase which will increase the price of oil today. In addition business are forward looking if they expect their cost to increase from next month and if they know that people are more likely to buy oil now because they anticipate higher prices, they can rise prices in advance.

> **Comments:**
> **username_0**: End consumers lack sufficient storage facilities to cause price jumps when it comes to gasoline. Their consumption is dictated by their real world needs. Maybe the distributors are the main reason by increasing their demand upstream but even then the sudden increase instead of a smooth one seems opportunistic.  

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