But MTBE, while not classified as a human carcinogen, is suspected to be a potential human carcinogen at high doses. MTBE gives water an unpleasant taste and can render large quantities of groundwater unfit for human consumption. The concern is that MTBE gets into the water supply from leaking underground storage tanks or from gasoline spilled onto the ground. The RBOB gasoline futures contract is settled by physical delivery. This means most investors want to liquidate positions prior to the expiration of the contracts. If a position is not liquidated, the holder of a long contract might be responsible for taking delivery of 42,000 gallons of gasoline.
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The costs of operating refineries and the productivity of those refineries can have a major effect on gasoline prices. The list of symbols included on the page is updated every 10 minutes hon is its stock price a worthy investment learn more throughout the trading day. However, new stocks are not automatically added to or re-ranked on the page until the site performs its 10-minute update.
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. RBOB’s price is most sensitive to supply-and-demand changes for the commodity. For example, hurricane weather in the Gulf of Mexico can have a big impact on RBOB’s price because it affects the supply produced by the many U.S. refineries in the gulf. Drivers use more gas in the summer, which also affects the price because of the increase in demand.
Top Countries by Gasoline Production
Say you want to buy an RBOB contract when the price is around $2.30 per gallon. That means you only need 12% of the total investment down to buy the contract on margin. New technologies such as electric-powered vehicles, for example, could substantially reduce demand for gasoline. This requires refiners to substitute more expensive components into gasoline.
Commodities and Trade Tariffs
The page will always show prices how to make money trading forex from the latest session of the market. As mentioned above, gasoline is a natural by-product of crude oil. For every three barrels of crude oil refined, approximately two barrels of gasoline can be salvaged. Refining this essential fuel can be done in a variety of ways, with the most popular being forms of “cracking”. Cracking is a process whereby hydrocarbon molecules are broken up by heat and pressure into lighter molecules. There are various forms of this process, including thermal cracking (the most popular) and catalytic cracking.
- Crude oil varieties and the technology available for refining them can lead to different gasoline products and pricing from one refinery to the next.
- 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.
- It is safe to say that most investors do not want to take physical delivery of that much gas.
- Much of the U.S. gasoline supply comes from refineries in the Gulf Coast region.
This section displays additional open contracts for the futures symbol you are viewing. At this point, the gasoline that comes out of the refinery is not a finished product. In the technical language of the industry, it is a blending component, or a blendstock. Ethanol needs to be mixed into gasoline at the local terminal racks, just before it’s delivered. The ethanol and gasoline are splash blended as the tanker truck fills before making the final trip to the gasoline station. From this point on in the supply chain, the corrosive nature of ethanol is not a concern.
Scroll through widgets of the different content available for the symbol. The “More Data” widgets are also available from the Links column of the right side of the data table. End-of-Day prices are updated at 8pm CST each evening, and includes the previous session volume and open interest information. 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.
Thus, some of the global supply and demand factors for crude oil also apply to RBOB. RBOB gasoline futures are listed on learn how to invest your money the Chicago Mercantile Exchange (CME) under the futures symbol RB. December Nymex natural gas (NGZ24 ) on Thursday closed sharply higher by +0.146 (+4.57%) Dec nat-gas prices Thursday extended this week’s sharp rally to a 1-year nearest-futures high.