Half of the National Oil Consumption is Gasoline
Because, of this more than ever it is subject to intense competition and price volatility. It is a highly diverse more than ever industry, with hundreds of wholesale distributors and thousands of retail outlets. Interestingly, ((The NYMEX Division New York harbor unleaded gasoline futures contract and reformulated gasoline blend stock for oxygen blending (RBOB) futures contract trade in units of 42,000 gallons or 1,000 barrels. Accounting for almost half of national oil consumption, gasoline is largest single volume refined product sold in thetheUnited States.
As listed by the Colonial Pipeline for fungible F grade for sales in Novel York and Fresh Jersey, RBOB is blended with 10% denatured fuel ethanol (92% purity). ((The industry is shifting towards ethanol with the ongoing phase out of the oxygenate methyl tertiary butyl ether (MTBE). conforms to industry standards for reformulatedRBOBregular gasoline blend stock. In fact, They are based on at petroleumdeliveryproducts terminals in Fresh York harbor, the major east coast trading center for imports and domestic shipments from refineries in the Fresh York harbor area or from the Gulf Coast refining centers. Immediately required in many areas for controlling emissions that can adversely affect air quality, the unleaded gasoline contract specifications conform to those for oxygenated gasoline.
Ready for the addition of 10% ethanol at the truck rack, RBOB is a wholesale non-oxygentated blend stock traded in the Fresh York Harbor barge industry. ((The Recent York Mercantile Exchange maintains quit message with federal and state officials and continues to evaluate changes in the regulations to ensure that the terms and conditions of the gasoline futures contract continue to mirror the cash field. Contracts provide a slate of flexible, liquid financial , including futures contracts, options contracts, calendar spread options contractsinstrumentscrack spread options contracts, and average price options. Exotic options contracts are offered as well.
The No. 2 fuel oil 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 Novel York harbor, the principal cash industry trading center. Optionsparticipantson futures, calendar spread options contracts, crack spread options contracts, and average price options contracts give niche even greater flexibility in managing price uncertainty.
Actually, 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 stable premium to NYMEX Division Recent York harbor heating oil futures.
Transactions in these contracts can also be consummated off-exchange and submittedforto the Exchange clearing through the NYMEX ClearPort® clearing website. The also lists for trading on the NYMEX ClearPort® trading platform a series of both gasoline and heating oil swap futures contracts based on crack spreads and location differentials, including European and average priceExchangeoptions.
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