Reformulated Blendstock for Oxygenate Blending (RBOB) is a gasoline futures contract traded on the

New York Mercantile Exchange The New York Mercantile Exchange (NYMEX) is a commodity futures exchange owned and operated by CME Group of Chicago. NYMEX is located at One North End Avenue in Brookfield Place in the Battery Park City section of Manhattan, New York City. ...

(NYMEX). It is the benchmark futures contract for wholesale

gasoline Gasoline ( North American English) or petrol ( Commonwealth English) is a petrochemical product characterized as a transparent, yellowish, and flammable liquid normally used as a fuel for spark-ignited internal combustion engines. When for ...

in the United States.

History

Edwin Drake Edwin Laurentine Drake (March 29, 1819 – November 9, 1880), also known as Colonel Drake, was an American businessman and the first American to successfully drill for oil. Early life Drake was born in Greenville, New York, on March 29, 18 ...

was the first to discover RBOB gasoline but discarded it as a byproduct on his quest to refine

crude oil Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring u ...

into

kerosene Kerosene, or paraffin, is a combustibility, combustible hydrocarbon liquid which is derived from petroleum. It is widely used as a fuel in Aviation fuel, aviation as well as households. Its name derives from the Greek (''kērós'') meaning " ...

Composition

RBOB gasoline is a blend of hydrocarbons suitable for use in

Spark-ignition engine A spark-ignition engine (SI engine) is an internal combustion engine, generally a petrol engine, where the combustion process of the air-fuel mixture is ignited by a spark from a spark plug. This is in contrast to compression-ignition engines, ty ...

s. It typically contains various additives, including

oxygenate In the liquid fuel industry, oxygenates are hydrocarbon-derived fuel additives containing at least one oxygen atom to promote complete combustion. Absent oxygenates, fuel combustion is usually incomplete, and the exhaust stream pollutes the air ...

s like

ethanol Ethanol (also called ethyl alcohol, grain alcohol, drinking alcohol, or simply alcohol) is an organic compound with the chemical formula . It is an Alcohol (chemistry), alcohol, with its formula also written as , or EtOH, where Et is the ps ...

methyl tertiary butyl ether Methyl ''tert''-butyl ether (MTBE), also known as ''tert''-butyl methyl ether, is an organic compound with a structural formula (CH3)3COCH3. MTBE is a volatile, flammable, and colorless liquid that is sparingly soluble in water. Primarily used as ...

(MTBE), to improve octane rating and reduce air pollution.

Refining

RBOB is refined from

and about half of the crude oil is refined into RBOB gasoline, therefore RBOB tracks the price of WTI crude closely.

References

{{reflist Chemical substances Benchmark crude oils Petroleum in the United States

History

Composition

Refining

See also

References