RBOB Gasoline: Understanding One of the Most Important Commodities in the World

California is the largest gasoline-consuming state with over 15 billion gallons consumed every year. 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. Also unique to Barchart, Flipcharts allow you to scroll through all the symbols on the table in a chart view. While viewing Flipcharts, you can apply a custom chart template, further customizing the way you can analyze the symbols.

January WTI crude oil (CLF25 ) today is up +0.55 (+0.78%), and January RBOB gasoline (RBF25 ) is up up +0.0029 (+0.14%). Crude oil and gasoline prices today are moderately higher, with crude climbing to… CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The higher the octane rating, the higher the compression rate, with a more efficient fuel capable of a higher output than those with a lower octane rating. Edwin Drake was the first to discover RBOB gasoline but discarded it as a byproduct on his quest to refine crude oil into kerosene. Long ago, in the bad old days when our cars were big, fuel was cheap, and we actually put lead in the gasoline, there was conventional gasoline.

Reformulated Gasoline Blendstock for Oxygenate Blending (RBOB) Prices: Regular Gasoline: Los Angeles (WRGASLA)

1. The statistics for RBOB gasoline are not perfect due to the fact that production and consumption is measured by crude oil rather than gasoline itself.
2. The ethanol and gasoline are splash blended as the tanker truck fills before making the final trip to the gasoline station.
3. Low Volatility ETFs invest in securities with low volatility characteristics.
4. Aside from its health hazards, gasoline has also long been under the gun for contributing to greenhouse gases and global climate change.
5. Prices tend to fall in the winter when inclement weather keeps consumers off the roads.

The cold air allowed engines to run cooler, creating more unburned hydrocarbons. This, combined with the way cold air tends to trap warmer exhaust, created hazier and smoggier days. You can use the CME Group website or the Nasdaq website to find the current price of a gallon of RBOB gas. RBOB gas is a grade of gasoline commonly used in the United States.

ETFs for Risk Reduction in Your Portfolio

If ethanol is pushed through a pipeline, the water that it attracts will corrode the inside of the pipes. If it’s mixed with gasoline at the refinery, every pipe and mtrading forex broker mtrading review mtrading information tank that it passes through will be subjected to higher levels of corrosion. The elimination of lead in gasoline and the introduction of catalytic converters in the mid-80s was only the first step in cleaning up the air. Other compounds, such as sulfur and benzene, still made it past the catalytic converter and into the air. Refiners have been adding MTBE to gasoline since 1979 to raise gasoline octane ratings and help prevent engine knocking.

An ongoing trade battle between the United States and China has magnified the impact of tariffs… Trading in a current delivery month will cease on the last business day of the month preceding the delivery month. Gasoline is one of the most widely known and used commodities in the world, primarily utilized for fuels. But its application extends beyond that industry to such uses as paint solvents, among others. Now let’s look at the import volume for the CBOB for the rest of PADD 1 that does not require the reformulation.

So this may give you some insight into what retail gas prices will be in a few days. Individuals who own a business that is sensitive to gas prices—a trucking company, for example—can use RBOB gas futures as a hedge. If you expect a future increase in gas prices, you can buy an RBOB futures contract, say, at $2.30 a gallon. If the price of gas rises past $2.30, you can sell your futures at a profit.

Find exchange traded funds (ETFs) whose sector aligns with the same commodity grouping as the symbol you are viewing. Analysis of these related ETFs and how they are trading may provide insight to this commodity. Due to gasoline’s widespread use, it has come under fire for numerous health and environmental concerns over the last few decades. From a health standpoint, the fuel stores numerous carcinogenic chemicals, and can mt4 white label and mt5 white label be a danger to the general public if a leak were ever to occur. This means that storage tanks, delivery trucks, and refining plants present the most dangerous threats of the chemical being released into the environment. Aside from its health hazards, gasoline has also long been under the gun for contributing to greenhouse gases and global climate change.

The Elements of a RBOB Contract

The margins on calendar spreads are lower because the u s. treasury bonds bills and notes 2020 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. RBOB stands for Reformulated Blendstock for Oxygenate Blending, a component that is used to create reformulated gasoline. Reformulated gasoline produces less smog than other gasoline blends. As a result, around 30% of the U.S. market requires gasoline to be reformulated.

There are also options for energy-related ETFs focused on oil and natural gas. Whereas buying an RBOB future could cost thousands, shares of ETFs can cost less than $20. Turmoil in important oil-producing countries can create spikes in gasoline prices. In the past, Middle East wars, oil embargos, political coups and acts of terrorism have created fears of supply disruptions and higher prices.