Reformulated Blendstock for Oxygenate Blending

  RBOB
  WTI crude

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]

See also

References

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