Reformulated Blendstock for Oxygenate Blending explained

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

• Commodity market
• Gasoline
• Fuel taxes in the United States
• New York Mercantile Exchange

Notes and References

1. Web site: 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 inline|date=March 2024}}
3. Web site: RBOB Gasoline: Understanding One of the Most Important Commodities in the World - Commodity.com. October 21, 2022. commodity.com.