25 Apr Refinery Mixology: What’s in Your Gasoline? OPIS, A Dow Jones Company
Additionally, RBOB price changes lag a few days behind the price you pay at the gas station. So, keeping an eye on RBOB prices can give you a sense of where retail gas prices are headed. New technologies such as electric-powered vehicles, for example, could substantially reduce demand for gasoline. Increasing demand for gasoline in Asia, Latin America and the Middle East often outpaces supply from those regions. Demand for gasoline has been steadily declining in Europe and the United States.
Fuel Buying 101
Twelve US states are required by law to implement reformulated gasoline or RBOB in their required areas. California, Connecticut, and New Jersey are among the most popular. States that are required to use RBOB in their fuel supply areas may be more likely to experience a price spike than other regions. This means that your single-malt scotch mixes well with club soda. This also means that fuel ethanol attracts water, making it corrosive to the steel used in pipelines and plumbing at oil refineries. If ethanol is pushed through a pipeline, the water that it attracts will corrode the inside of the pipes.
Trade policies and tariffs further influence market dynamics, as changes to the flow of raw materials and finished products can alter production costs and pricing. The All Futures page lists all open contracts for the commodity you’ve selected. Intraday futures prices are delayed 10 minutes, per exchange rules, and are listed in CST. Overnight (Globex) prices are shown on the page through to 7pm CT, after which time it will list only trading activity for the next day.
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What Is the Difference Between CBOB and RBOB Gasoline?
Gasoline is also used as a fuel in equipment for construction, farming, forestry and landscaping. Electricity generators and emergency power supplies also use gasoline. However, after the invention of the automobile in 1892, gasoline became the main source of fuel for cars and light-duty vehicles. This makes gasoline one of the most important and well-known commodities in the world. Most data tables can be analyzed using “Views.” A View simply presents the symbols on the page with a different set of columns.
Top Countries by Gasoline Production
- Certain options strategies, like vertical spreads, have predefined profits and losses.
- The most prolific uses of RBOB gasoline is as fuel for various products such as cars, lawn mowers, generators, pressure washers, and many other common household appliances.
- The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness.
- Producing reformulated gasoline using ethanol presents problems for refiners.
The most prolific uses of RBOB gasoline is as fuel for various products such as cars, lawn mowers, generators, pressure washers, and many other common household appliances. Do you find it challenging to stay on top of daily changes in fuel prices? Are you tired of manually researching and monitoring fuel prices in multiple markets to stay ahead of the competition?
Reformulated Blendstock for Oxygenate Blending
Trade confidently with free real-time Level 2 market data and personal broker support. Low Volatility ETFs invest in securities with low volatility characteristics. These funds tend to have relatively stable share prices, and higher than average yields. Traders venturing into the futures market for the first time need to consider the inherent risks… When it comes to crude consumption, the U.S. uses more than the next four highest consumers combined. It is also important to note that our consumption is roughly twice that of our production, making our nation so dependent on foreign oil.
The OPIS Spot Ticker provides real-time, accurate fuel price information for gasoline, diesel, jet fuel, and other refined products in all U.S. markets for a more profitable fuel transactions. Benchmark trades all session long with a full-day view of East of the Rockies spot fuel markets. RBOB is more expensive to refine—more energy and more effort are required to pull some of the additional hydrocarbons out of the fuel. Producing reformulated gasoline using ethanol presents problems for refiners.
At the end of that recipe you have two types of almost finished gasoline called Conventional Blendstock for Oxygenate Blending and Reformulated Blendstock for Oxygenate Blending. Today, ethanol is used primarily as motor fuel and a fuel additive. RBOB is Reformulated Blendstock for Oxygenated Blending, a mix of petrochemicals intended to be mixed with ethanol to produce finished motor gasoline. The margins on calendar spreads are lower because the two contracts have a high degree of correlation and generally move in the same direction. However, one contract might move more than the other due to market conditions.
- The blendstocks are a mix of components such as butane, reformate and FCC gasoline, which can be combined in different ways to reach needed specifications.
- After refining, RBOB is transported via pipelines, barges, or tankers to blending terminals, where it is combined with oxygenates before reaching retail outlets.
- Minimum contracts are equal to 42,000 gallons (1,000 barrels) and trade for the value per gallon.
- The refiner must remove light molecular weight, high RVP components, which changes the RFG’s distillation characteristics.
- It is safe to say that most investors do not want to take physical delivery of that much gas.
- CARBOB is even more expensive, and is the main reason why California gasoline prices are typically higher than anywhere else in the country.
Environmental impact is the biggest difference between the two options. RBOB it outstaffing service is known to burn more eco-friendly emissions compared to CBOB. It is also proven to reduce smog and pollutants in the ground-level ozone layer.
First, transportation of this fuel can be expensive, as can the refining process to turn crude into gasoline. The prices of RBOB are directly correlated with crude oil, meaning that they will exhibit significant volatility that may be an attractive trait for many traders. Secondly, investments in gasoline can also be used to hedge against inflation, or simply to make a play on our global addiction to fossil fuels. Gasoline is a vital part of our Pepperstone Forex Broker everyday lives, and there is a strict need to consume no matter what economic conditions may be, making it an attractive investment during all kinds of markets. The crack spread, which measures the difference between crude oil prices and the value of refined products like RBOB and distillates, highlights this relationship.
End-of-Day prices are updated at 8pm CST each evening, and includes the previous session volume and open interest information. The Octane Rating measures how resistant gasoline is to unexpected combustion and engine knock. “Octane” is a specific hydrocarbon molecule known for reducing engine knock.
However, refinery maintenance or production adjustments during this time can temporarily impact RBOB availability. Weather events, such as hurricanes, may also disrupt supply chains, creating price volatility. Geopolitical events, including unrest in oil-producing regions, can disrupt supply chains and create price volatility.