RBOB Gasoline
Reformulated Blendstock for Oxygenate Blending — the US benchmark unleaded gasoline futures contract traded on NYMEX in $/gallon.
RBOB (Reformulated Blendstock for Oxygenate Blending) is the US benchmark gasoline futures contract traded on NYMEX. RBOB is a blendstock — it is mixed with ethanol (typically 10%) at the rack before retail sale. The contract covers 42,000 gallons (1,000 barrels) per lot.
RBOB prices exhibit strong summer seasonality: refiners switch from cheaper winter-blend gasoline to more expensive summer-blend around February/March, creating a typical seasonal rally into Memorial Day weekend. Prices tend to peak in late spring and fall in autumn.
RBOB is the gasoline input into 3-2-1 crack spread calculations and is the benchmark against which US retail gasoline prices are set.
Example
RBOB front-month trades at $2.55/gallon in early March. Refiners have just begun the blend switchover. By Memorial Day, RBOB reaches $2.90/gallon — a $0.35 seasonal move that translated to roughly $0.35 higher at the pump before taxes and marketing margins.
Related Terms
Crack Spread
The price difference between crude oil and refined petroleum products (gasoline, diesel), representing the refining margin.
AdvancedEnergy Complex
The collective term for energy-related commodities — crude oil, natural gas, refined products (gasoline, heating oil, diesel) — and the markets and instruments around them.
BeginnerHeating Oil
A distillate fuel oil used for space heating and as a diesel proxy, traded on NYMEX in $/gallon and a key component of crack spread calculations.
IntermediateSeasonality
Recurring, calendar-driven price patterns in commodities caused by predictable cycles in supply (harvest) and demand (weather-driven consumption).
IntermediateWTI Crude
West Texas Intermediate crude oil — the US benchmark grade traded on NYMEX, priced in $/barrel and settled at Cushing, Oklahoma.
Beginner