Gasoline, which accounts for nearly half of the nation’s oil consumption, is the largest-volume refined product sold in the United States. It is a very diverse market, with hundreds of wholesale distributors and thousands of retail outlets. Because of this, it is subject to intense competition and price volatility. ((The NYMEX Division New York Harbor Unleaded Gasoline Futures Contract and the Reformulated Blended Oxygen (RBOB) Gasoline Futures Contract are traded in units of 42,000 gallons or 1,000 barrels.
They are based on delivery to 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 refining centers of the Gulf Coast. ((The industry is shifting to ethanol with the ongoing phase-out of oxygenated methyl tertiary butyl ether (MTBE). Now required in many areas to control emissions that can negatively affect air quality, gasoline contract specifications unleaded conform to those of oxygenated gasoline The RBOB meets industry standards for regular reformulated gasoline blends As listed by Colonial Pipeline for expendable F grade for sales in New York and New Jersey, the RBOB is mixture with 10% denatured fuel ethanol (92% purity).
Ready for 10% ethanol addition at the truck rack, RBOB is a wholesale non-oxygenated blend stock traded on the New York Harbor barge market. ((The New York Mercantile Exchange maintains close contact with federal and state officials and continues to evaluate regulatory changes to ensure that the terms and conditions of the gasoline futures contract continue to reflect the cash market. The contracts provide a list of flexible and liquid transactions.) financial instruments, including futures contracts, option contracts, calendar margin option contracts, crack margin option contracts, and mid-price options.
Fuel oil number 2 is heating oil and accounts for about 25% of the yield of a barrel of crude, the second largest “cut” after gasoline. The heating oil futures contract also trades in units of 42,000 gallons or 1,000 barrels. and is based on delivery in the port of New York, the main commercial center of the cash market. Options on futures, calendar spread option contracts, crack spread option contracts, and average price option contracts provide market participants with even greater flexibility in managing price risk.
The heating oil futures contract is also used to hedge diesel fuel and jet fuel, both of which trade in the cash market at an often steady premium to New York Harbor heating oil futures. of the NYMEX Division.
The Exchange also lists for trading on the NYMEX ClearPort® trading platform a number of gasoline and heating oil swap futures contracts based on crack spreads and location spreads, including mid-price and European options. Transactions in these contracts can also be made off-exchange and submitted to the Exchange for clearing through the NYMEX ClearPort® clearing website.
Investment in oil and energy products can be made through oil and energy producers. Triple Diamond Energy Corporation specializes in acquiring the highest quality prime oil and natural gas properties.
