Gas Futures Contract Specs:
- Ticker Symbol: RB
- Exchange: NYMEX
- Trading Hours: 9:00 AM until 2:30 PM EST.
- Contract Size: 42,000 U.S. gallons (1,000 barrels)
- Contract Months: all months(Jan. - Dec.)
- Price Quote: U.S. dollars and cents per gallon. Ex $2.25 per gallon
- Tick Size: $0.0001 (0.01¢) per gallon ($4.20 per contract).
- Last Trading Day: close of business on the last business day of the month preceding the delivery month.
RBOB Gasoline Futures - Fundamentals :
Reformulated Gasoline Blendstock for Oxygen Blending (RBOB) Futures is the new name for unleaded gas futures. The NYMEX has changed the grade of gasoline that is to be traded at their exchange in 2006.
RBOB is a wholesale non-oxygentated blendstock traded in the New York Harbor barge market that is ready for the addition of 10% ethanol at the truck rack.
Gasoline is a by-product of crude oil. For every three barrels of crude oil that is refined, it yields about 2 barrels of gasoline.
Seasonally, gas futures normally reach their lowest price levels in December and their highest prices in April - May.
RBOB Gas Futures Reports:
The main report for RBOB Gasoline is the EIA Weekly Energy Stocks report.
Tips on Trading Gas Futures:
- The refineries are usually gearing up for gasoline production in the spring. Any refinery shutdowns or problems can cause markets to move higher, since
we will need large supplies of gasoline for the summer driving season.
- You can add about 65 cents(taxes) to the price of gas futures to get the retail price you pay at the pump. The retail price usually lags about a week.
- Hurricanes in the Gulf of Mexico can cause price spikes, since most of the U.S refineries are located in that area.
- Gas futures will typically follow the price of crude oil futures.