Reformulated Blendstock for Oxygenate Blending (RBOB) is a gasoline futures contract traded on the New York Mercantile Exchange (NYMEX). It is the benchmark futures contract for wholesale gasoline in the United States.1
History
Edwin Drake was the first to discover RBOB gasoline but discarded it as a byproduct on his quest to refine crude oil into kerosene.
Composition
RBOB gasoline is a blend of hydrocarbons suitable for use in spark-ignition engines. It typically contains various additives, including oxygenates like ethanol or methyl tertiary butyl ether (MTBE), to improve octane rating and reduce air pollution.2
Refining
RBOB is refined from crude oil and about half of the crude oil is refined into RBOB gasoline; therefore, RBOB tracks the price of WTI crude closely.3
References
References
- "Petroleum & Other Liquids – Table Definitions, Sources, and Explanatory Notes". www.eia.gov.
- "Rbob Gasoline Futures Contract Specs - CME Group". Retrieved 2024-12-04.
- "RBOB Gasoline: Understanding One of the Most Important Commodities in the World - Commodity.com". commodity.com. October 21, 2022.