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Friday, April 24, 2009

D2 Spot Market Analysis

By Derek Powell

D2 Spot is a type of fuel and certain trading market. This can be translated as buying or selling diesel fuel for immediate delivery. As much of the petroleum products in use come from around the world, the Internet is commonly used for trading most of the spot market commodities.

D2 Spot can be sold on the physical or cash market, subject to certain standards. Trading involves different international countries with a variety of currencies, so an investor must manage the relevant exchange rates. This type of crude oil has origins mainly in Russia, but also in Saudi Arabia. This global market is very liquid, so investors may enter and exit as they wish.

D2 Spot real-time transactions require payment for the type of fuel at the current market price and in cash, as opposed to the price at the time of delivery. The security must also be delivered within a relatively short space of time for a spot market, typically within a day or so of the sale.

Very little of the world's crude oil is traded on the spot market, as energy commodities typically have long-term contracts. D2 Spot is mainly needed in the transportation arena, four vehicles that run on diesel fuel. Being very low in sulfur, this type of fuel is ideal for diesel use.

Both the buyer and seller expected immediate payment when conducting a transaction for D2 spot. Entities from around the world trade daily with this type of crude oil and other petroleum products.

D2 Spot markets deal with international trade in crude oil. Today's market price is based on supply and demand. The spot price can vary depending on a number of factors, just as with any type of oil, including usage, economic conditions and time of year.

The seller and buyer realizes that the D2 Spot contract is in effect as soon as the deal is consummated. This is not the same as a futures market, with deferred payments and prices based on a future trade price, including storage costs. However, sometimes crude oil is sold at spot prices with actual delivery a few months hence.

D2 Spot trading takes place on the spot or cash market. The price of commodities, securities, or goods are set with the intention of immediate trading. A buyer or a seller of diesel fuel they find each other on the spot market and conduct a transaction within minutes. Markets are managed by industry groups or government agencies, or in certain cases privately held - 23208

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