What is a wholesale rack market for fuels?
โRackโ or โWholesaleโ purchases are made along a fuel distribution system โ usually a pipeline. Transactions are approximately 8,000 gallons and are made at 1,500 terminals in nearly 400 market locationsย across the U.S.
Energy companies that re-sell fuel (jobbers) as well as retailers or end users (e.g., trucking companies) pull fuel products from wholesale racks. Wholesale rack prices move up or down each day at 6pm, based on the movements of the volatile spot market. Intraday price moves and regional price swings are common.
