Half of the National Oil Consumption is Gasoline

Accounting for almost half of national oil consumption, gasoline is the largest single volume refined product sold in the United States. It is a highly 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 reformulated gasoline blend stock for oxygen blending (RBOB) futures contract trade in units of 42,000 gallons or 1,000 barrels. They are based on delivery at 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 Gulf Coast refining centers. 

The industry is shifting towards ethanol with the ongoing phase out of the oxygenate methyl tertiary butyl ether (MTBE). Now required in many areas for controlling emissions that can adversely affect air quality, the unleaded gasoline contract specifications conform to those for oxygenated gasoline. RBOB conforms to industry standards for reformulated regular gasoline blend stock. As listed by the Colonial Pipeline for fungible F grade for sales in New York and New Jersey, RBOB is blended with 10% denatured fuel ethanol (92% purity). Ready for the addition of 10% ethanol at the truck rack, RBOB is a wholesale non-oxygentated blend stock traded in the New York Harbor barge market. 

The New York Mercantile Exchange maintains close contact 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 market. Contracts provide a slate of flexible, liquid financial instruments including futures contracts, options contracts, calendar spread options contracts, crack 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 New York harbor, the principal cash market trading center. Options on futures, calendar spread options contracts, crack spread options contracts, and average price options contracts give market participants 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 stable premium to NYMEX Division New York harbor heating oil futures.
The Exchange 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 price options. Transactions in these contracts can also be consummated off-exchange and submitted to the Exchange for clearing through the NYMEX ClearPort® clearing website.

Investing in oil and energy products can be done through the oil and energy producers. Triple Diamond Energy Corporation specializes in acquiring the highest quality prime oil and natural gas properties.