Unleaded Gasoline & RBOB

Tuesday, 18 January 2011 08:14 Melissa Moore

1. Can I clarify this, in MRCI research do you mean gasoline blendstock (RBOB)?

Yes, whenever we refer to gasoline, we do mean RBOB.  In prior years, the primary futures contract for gasoline was Unleaded Gasoline (HU) but that was replaced with RBOB --- which is now the primary market.  We converted prices from that old Unleaded contract to reflect what they would have been had RBOB traded instead.

All our research and tracking is based on settlement prices for the RTH on exchange floors (when applicable).

2. I have a question regarding the spread graph and even end of day values for RBOB gasoline & Heating Oil....
On the CME it has values in this format x.xx e.g. 2.34  - the end of day quotation in your website has this format xxx.x e.g. 234.2 and the spread graph as well is coherent with the second representation.
But when I graph the future contract or the spread on my electronic platform the representation is coeherent with CME values x.xx.
Is not a matter of unit move as for gasoline is 420.

RBOB gasoline and heating oil are both priced in dollars/gallon.  The CME would actually quote in the format x.xxxx/gallon because the minimum fluctuation is $0.0001/gallon.  In an attempt to make it simpler visually for traders to identify price change, MRCI places the decimal two places to the left of the minimum fluctuation.  Thus, whereas CME might quote a price of $2.7831/gallon, MRCI would quote it as 278.31 cents/gallon --- with each 1.00 cent/gallon worth $420/contract.

Last Updated on Tuesday, 24 January 2012 04:27