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 Gasoline Blendstock Futures and Options

 Free Gasoline Blendstock Futures Trading eGuide

gaspump.jpgGasoline futures are an outright gasoline contract between a buyer and a seller. The contract is based on the largest single volume refined product sold in the United States - gasoline - which accounts for almost half of national oil consumption and trades in a highly diverse market, with hundreds of wholesale distributors and thousands of retail outlets, resulting in intense competition and price volatility.

 Gasoline Futures Things to know:

  • Based on delivery at petroleum products terminals in New York Harbor, the major East Coast trading center for imports and domestic shipments from refineries in the New York harbor area or from the Gulf Coast refining centers
  • Traded via open outcry and electronically on CME Globex
  • Trading at settlement is available for the front two months except on the last trading day and is subject to the existing TAS rules
  • Option types: American-style, calendar spread, crack spread, average price, European-style

 

Gasoline Futures: About New York Harbor RBOB Gasoline
New York Harbor RBOB Gasoline conforms to industry standards for reformulated regular gasoline blendstock for blending with 10% denatured fuel ethanol (92% purity) as listed by the Colonial Pipeline for fungible F grade for sales in New York and New Jersey. RBOB is a wholesale non-oxygenated blendstock traded in the New York Harbor barge market that is ready for the addition of 10% ethanol at the truck rack.

To ensure that the terms and conditions of the gasoline futures contract continue to mirror the cash market, the Exchange maintains close contact with federal and state officials and continues to evaluate changes in the regulations.

Along with the futures contracts, options contracts, calendar spread options contracts, crack spread options contracts, and average price options contracts provide a slate of flexible, liquid financial instruments. Exotic options contracts are offered as well, under the calendar spread option, average price option, crack spread option, European “look alike” option, and conventional gasoline vs. RBOB option.

The Exchange also lists for trading a series of gasoline swap futures contracts based on crack spreads and location differentials, including European and average price options. Transactions in these contracts can also be consummated off-exchange and submitted for clearing through CME ClearPort clearing.

Gasoline Blendstock Futures Contract Specifications

Reformulated Gasoline Blendstock for Oxygen Blending (RBOB)
Contract Specifications

Gasoline Blendstock Futures

New York Harbor RBOB Gasoline (Physical) futures are an outright gasoline contract between a buyer and a seller.

Product Symbol RB
Venue CME Globex, CME ClearPort, Open Outcry (New York)
Hours
(All Times are New York Time/ET)
CME Globex: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)
CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)
Open Outcry: Monday – Friday 9:00 AM to 2:30 PM (8:00 AM to 1:30 PM CT)
Contract Unit 42,000 gallons
Price Quotation U.S. dollars and cents per gallon.
Minimum Fluctuation $0.0001 per gallon
Termination of Trading Trading in a current delivery month shall cease on the last business day of the month preceding the delivery month.
Listed Contracts 36 consecutive months
Settlement Type Physical
Delivery Please see rulebook chapter 191
Delivery Period
Grade and Quality Specifications
Position Limits NYMEX Position Limits
Rulebook Chapter 191
Exchange Rule These contracts are listed with, and subject to, the rules and regulations of NYMEX.

Gasoline Futures Options

New York Harbor RBOB Gasoline (Physical) options are the right but not the obligation to buy or sell a crude oil futures contract at a specified strike price.

Underlying Futures RBOB Gasoline Futures (RB)
Product Symbol OB
Venue CME Globex, CME ClearPort, Open Outcry (New York)
Hours
(All Times are New York Time/ET)
CME ClearPort: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)
CME Globex: Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)
Open Outcry: Monday – Friday 9:00 AM to 2:30 PM (8:00 AM to 1:30 PM CT)
Contract Unit A RBOB Gasoline Put (Call) Option traded on the Exchange represents an option to assume a short (long) position in the underlying futures contract traded on the Exchange.
Price Quotation U.S. dollars and cents per gallon.
Option Style American
Minimum Fluctuation $0.0001 per gallon
Expiration of Trading Expiration occurs three business days before the underlying futures contract.
Listed Contracts 36 consecutive months.
Strike Prices Twenty strike prices in $0.01 per gallon increments above and below the at-the-money strike price, and the next 10 strike prices in $0.05 increments above the highest and below the lowest existing strike prices for a total of at least 61 strike prices. The at-the-money strike price is the nearest to the previous day's close of the underlying futures contract. Strike price boundaries are adjusted according to the futures price movements.
Settlement Type Physical
Position Limits NYMEX Position Limits
Rulebook Chapter 335
Exchange Rule These contracts are listed with, and subject to, the rules and regulations of NYMEX.

SEE ALSO:Crude oil;Natural Gas;Heating Oil;Unleaded Gas;Ethanol