U. S. Oil offers several different options for contracting your fuel needs. Below are the two most common options; along with what each contract entails.
OPTION 1 – Fixed Forward (FF) Contracts
- Minimum of 42,000 gross gallons
- Time frame of contract to be determined by customer
- $.10-.20 prepayment required on all gallons. The balance to be billed on normal business terms
- Product must be pulled ratable over the contract period. example: if you contract 60,000 gallons over 3 months, you must pull 20,000 gallons per month
- Price is given per month, or cost-averaged over the contracted period
- If the product is not pulled within the contracted period, the customer will be billed in full and a storage fee will be assessed
OPTION 2 – Index based contracts
- Minimum contract period is 1 year
- Gallons must be pulled ratable
- Contracts can be based off various indexes; OPIS, Platts, or AXXIS
- The daily price is a predetermined markup over the respective Index
- Contracts can be "same day" or "next day". Meaning, pricing is good 12 am to 12 pm the day the Index price comes out, or from 12 am to 12 pm the day following the Index price.
- If the product is not pulled within the contract period, the customer will be assessed a short-fall penalty.
