RBOB (Reformulated Blendstock for Oxygenate Blending) Gasoline futures are traded on the New York Mercantile Exchange (NYMEX). They serve as a benchmark for gasoline prices in the United States, reflecting the cost of unleaded gasoline used as a blendstock for producing finished motor gasoline.
Description: RBOB Gasoline futures are financial contracts that obligate the holder to buy or sell a specified quantity of gasoline at a predetermined price on a future date. These futures are traded on the NYMEX, a division of the Chicago Mercantile Exchange (CME) Group. RBOB stands for Reformulated Blendstock for Oxygenate Blending, which is a type of gasoline that meets the requirements of the Clean Air Act. The contract size is 42,000 gallons (1,000 barrels). RBOB gasoline futures are widely used by refiners, wholesalers, and end-users to hedge against price volatility in the gasoline market. They also serve as a key benchmark for gasoline prices in the United States, influencing retail fuel costs. The futures market provides price discovery and risk management for participants in the energy sector. Gasoline is a critical commodity for transportation and economic activity, making these futures essential for market stability.
Established / Launched: 2006
Founder / Issuer: New York Mercantile Exchange (NYMEX)
