RBOB

RBOB stands for Reformulated Gasoline Blendstock for Oxygenates Blending. It is a type of gasoline blendstock produced by refiners in the United States that serves as the base for finished reformulated gasoline (RFG) after blending with oxygenates such as ethanol. RBOB is not a finished fuel itself; rather, it is designed to meet regulatory and volatility requirements so that oxygenates can be added to form compliant gasoline for sale in designated markets, particularly urban areas under the Clean Air Act.

RBOB specification includes compatibility with oxygenates and adherence to environmental standards, including limits on Reid vapor pressure and sulfur content that vary by season. The blendstock is produced at refineries and distributed through the fuel supply chain, eventually being blended with ethanol to meet regional formulations.

Economically, RBOB is also a benchmark price and futures contract. It is traded on the CME Group as RBOB Gasoline futures. The contract size is typically 42,000 U.S. gallons per contract, and prices are quoted in dollars per gallon. Delivery points and specifications are defined by the exchange, and traders use the RBOB contract to manage exposure to fluctuations in gasoline prices.

History and context: The RBOB concept arose with reformulated gasoline programs implemented in the 1990s to reduce emissions and enable oxygenates blending. Today, RBOB remains a central reference in U.S. gasoline markets, serving both as a production input and as a widely used price benchmark for energy hedging and commodity reporting.