Reformulated Blendstock for Oxygenate Blending
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
[edit]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
[edit]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
[edit]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]
See also
[edit]References
[edit]- ^ "Petroleum & Other Liquids – Table Definitions, Sources, and Explanatory Notes". www.eia.gov.
- ^ https://www.cmegroup.com/markets/energy/refined-products/rbob-gasoline.contractSpecs.html[bare URL]
- ^ "RBOB Gasoline: Understanding One of the Most Important Commodities in the World - Commodity.com". commodity.com. October 21, 2022.