PrintUnleaded gasoline is referred to as RBOB (pronounced R-Bob). RBOB stands for Reformulated Blend for Oxygenated Blending. What we get at the gas pump-- you usually have the opportunity to get 100% unleaded in very few places. Mostly, it's a 90/10-- that is, it's 90% gasoline, 10% ethanol or some other type of blending component. In some cases, you hear about E85, which is 85% unleaded, 15% of some other additive, normally something like ethanol.
So what's traded on the New York Mercantile Exchange is actually the 100% unleaded. It becomes a feedstock for unleaded because it's only 90% of what we get at the pump unless we're buying 100% unleaded. So it's reformulated blend for oxygenated blending. They're going to blend oxygenators into the unleaded gasoline.
The oxygenators are seasonal in nature, depending on the regions. Again, oxygenators help to burn the gasoline more efficiently and therefore reduce the emissions. Oxygenators are things such as ethane, ethanol, butane, isobutane, and natural gasoline.
Every RBOB contract is 42,000 gallons. US dollars and cents, and the minimum fluctuation is 1/1000 of a penny per gallon. The delivery point is free onboard or delivered into the petroleum products terminals in New York Harbor. Margin requirements-- $8,100 per contract.