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
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The collective term for energy-related commodities — crude oil, natural gas, refined products (gasoline, heating oil, diesel) — and the markets and instruments around them.
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Beginner