
Gasoline is one of the many products that come from crude oil and normally accounts for the bulk of refinery products. From a typical barrel of oil, processing can yield the following:
Gasoline quality and constituents can vary based on the type of crude oil it is derived from and the refining process used to produce it. It must also meet particular standards and enviromental regulations which can vary from state to state, and country to country. RBOB in particular is oxygenated via oxygen bearing compounds which are intended to reduce carbon monoxide emissions as well as smog and air pollutants. Ethanol is one of these added compounds, and in the United States corn ethanol is normally used.
Since specific areas have different requirements, gasoline produced distinctly for some areas cannot be used or substituted in others. Gasoline is normally held in bulk storage terminals after shipment through the pipeline and many additive packages are blended in the truck tank.
According to the EIA, the main components of the retail price of gasoline include the price of the crude oil, Federal and States' taxes, refining costs and profits, and distribution and marketing costs. The percentage weight of these components in the overall price of gasoline can and has varied at different times and in different regions of the country.
Disclaimer: There is risk of loss in all commodities trading. Losses can exceed your account size and/or margin requirements. Commodities trading can be extremely risky and is not for everyone. Some option strategies have unlimited risk. Educate yourself on the risks and rewards of such investing prior to trading. Futures Press Inc., the publisher, and/or its affiliates, staff or anyone associated with Futures Press, Inc. or www.learnaboutfutures.com, do not guarantee profits or pre-determined loss points, and are not held monetarily responsible for the trading losses of others (subscribers or otherwise). Past results are by no means indicative of potential future returns. Options DO NOT necessarily move lock step with the underlying futures contract. Information provided is compiled by sources believed to be reliable. Futures Press, Inc., and/or its principals, assume no responsibility for any errors or omissions as the information may not be complete or events may have been cancelled or rescheduled. Any copy, reprint, broadcast or distribution of this report of any kind is prohibited without the expressed written consent of Futures Press, Inc.