However, options also have a strike price, which is the price above which the option finishes in the money. Trading in futures requires a high level of sophistication since factors such as storage costs and interest rates affect pricing. 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. RBOB is a common grade of gasoline produced by refiners in the US. The chart above shows the weekly average import volume, in thousands of barrels, of RBOB (with special blending components for blending with ethanol) into the PADD 1—Northeast area.

  1. The page will always show prices from the latest session of the market.
  2. This can result in a cleaner engine and overall improved performance, both in terms of output and fuel economy.
  3. You can get access to trading them through most brokerage firms and futures trading portals.
  4. In the wake of a number of costly lawsuits, California and New York banned the use of MTBE in 2004.
  5. Once the markets have closed, the Last Price will show an ‘s’ after the price, indicating the price has settled for the day.

Reformulated Blendstock for Oxygenate Blending (RBOB) gasoline is a fuel product made from refined crude oil. RBOB gasoline often goes by the names gasoline, petro gasoline or petrol. I do believe that oil production globally has peaked at 85 million barrels.

The term crack spread describes the difference between the value of gasoline and crude oil. This activity is known as the downstream https://bigbostrade.com/ process of oil and gas companies. In the refining process, crude oil is heated and introduced into the distillation tower.

While there are stringent rules regulating what goes into your fuel tank, those standards still don’t necessarily mean you’re being offered the best fuel. Top-Tier-rated gasoline contains a concentration of added detergents that are higher than the minimum amount specified by the EPA. This can result in a cleaner engine and overall improved performance, both in terms of output and fuel economy. This 2016 study from AAA (PDF) goes into detail about how Top-Tier detergent gasoline can make a real difference in quality without impacting your wallet to a significant degree.

What is the RBOB/ Brent Crack Spread and How is it Used in Energy Trading?

As a result, weather events or supply congestion in that area can cause short-term delays or price spikes. RBOB is Reformulated Blendstock for Oxygenated Blending, a mix of petrochemicals intended to be mixed with ethanol to produce finished motor gasoline. Spot the iconic orange ball of a 76 gas station, and you’re in good hands. With the third-best customer service ranking on our list, the station only operates 1,800 stores, but it’s worth making it your-go to if one is nearby. BP recently shuttered its old awards program and instituted BPme, an app-based gas rewards program that allows members to save 5 cents per gallon at any of its 7,200 locations.

Oil refineries separate out the different chains by heating the crude oil to different vaporization points, and then distilling the resulting vapors. Gasoline is a mixture of those hydrocarbon chains with boiling points below that of water. These different chains are blended together in various proportions to provide a consistent product for motor fuel. Individuals who own a business that is sensitive to gas prices—a trucking company, for example—can use RBOB gas futures as a hedge.

Key Data

Crack spreads are a way to measure the margins for refining crude products and can serve to predict how tight the supply of products is in different markets. In the view of many analysts, growing demand for crude combined with strains on refining capacity could drive gasoline prices higher. If these storms shut down refineries, then the United States, the world’s largest consumer of gasoline, will have to seek new sources for petroleum products. As emerging market economies grow, people will purchase more cars and other forms of transportation.

RBOB Gasoline Daily Price

Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. For reference, we include the date and timestamp of when the list was last updated at the top right of the page. End-of-Day prices are updated at 8pm CST each evening, and includes the previous session volume and open interest information. Because gasoline produces carbon emissions, many countries are finding ways to incentivize less consumption.

Currently, members of the Make It Count rewards program can save 5 cents per gallon just by participating. The standard one adds a 1% cash-back bonus to the BPme rewards on any nonfuel purchases at participating stations. The higher-tier BP Visa credit card takes 10 cents off per gallon, earns 3% cash back on groceries and 1% cash back on any purchase made outside of a BP station. It gets its name from being a conventional grade of gasoline (“C”) as opposed to a reformulated grade (such as RBOB) that has tighter environmental specifications. CBOB is a “BOB” (before oxygenate blending) because it is formulated for subsequent blending with 10% ethanol to form the final gasoline blend that is marketed to end users.

Distribution and Miscellaneous Costs

You can get access to trading them through most brokerage firms and futures trading portals. 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. There isn’t an easy way to invest directly in RBOB gas with stocks or bonds, but you can invest in energy sector stocks and bonds affected by the same economic forces. 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.

From a health standpoint, the fuel stores numerous carcinogenic chemicals, and can 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. CARBOB is even more expensive, and is the main reason why California gasoline prices are typically higher than anywhere else in the country.

Gasoline is also used as a fuel in equipment for construction, farming, forestry and landscaping. Electricity generators and emergency power supplies also use gasoline. Each fraction has molecule chains of different lengths, and each of these chains has a different boiling point. Barchart Plus Members have 10 downloads per day, while Barchart Premier Members may download up to 250 .csv files per day. For dynamically-generated tables (such as a Stock or ETF Screener) where you see more than 1000 rows of data, the download will be limited to only the first 1000 records on the table. For other static pages (such as the Russell 3000 Components list) all rows will be downloaded.

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This is another light sweet crude oil that is used in the refining process to create gasoline. WTI is the US benchmark and since the US is the largest consumer of gasoline world-wide, WTI is an actively traded crude oil benchmark. The RBOB / Brent crack spread describes the difference between the price of RBOB gasoline forex trading for beginners and the price of Brent crude oil. RBOB Gasoline is quoted in US cents per gallon and Brent crude oil is quoted in US dollars per barrel. To generate an “apples to apples” comparison, the crack is quoted in US dollars per barrel. To create this quote, RBOB gasoline is converted into US dollars per barrel.