Spec trading ideas for Gulf Coast refined products / Mexico arb?

I work for a fuel distribution company that trades the arb between Gulf Coast refined products and Mexico.

We export product, handle the logistics, storage/terminaling, freight, documentation, border movement, and delivery into Mexico. The business makes money on physical margins rather than outright speculation.
We are starting to explore whether there are ways to use our physical market knowledge to spec trade around this flow, especially where we may have an informational or logistics edge.
Has anyone here seen practical ways to structure this?

A few areas we are thinking about:
Physical vs paper basis trades
USGC vs Mexico pricing dislocations
Diesel/gasoline spreads
Storage optionality
Timing exports around congestion, refinery outages, or terminal constraints
Hedging only part of the exposure when physical prices do not fully pass through

Curious if anyone has experience turning a physical refined products operation into a more systematic trading strategy. Not looking for anything reckless, more interested in realistic structures that could be implemented by a company already active in the flow.

Posted Jun 11, 2026, 10:28 PM UTC

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