Reformulated Blendstock for Oxygenate Blending (RBOB) is a gasoline futures contract traded on the New York Mercantile Exchange (NYMEX). It is the benchmark futures contract for wholesale gasoline in the United States.
History Edwin Drake was the first to discover RBOB gasoline but discarded it as a byproduct on his quest to refine crude oil into kerosene.
Composition RBOB gasoline is a blend of hydrocarbons suitable for use in spark-ignition engines. It typically contains various additives, including oxygenates like ethanol or methyl tertiary butyl ether (MTBE), to improve octane rating and reduce air pollution.
Refining RBOB is refined from crude oil and about half of the crude oil is refined into RBOB gasoline; therefore, RBOB tracks the price of WTI crude closely.
See also Commodity market Fuel taxes in the United States
References