Gasoline is one of the most widely-known and used commodities worldwide. It is primarily utilized for fuels, but can be also used for various reasons like a solvent to dilute paints. While we refer to the liquid as gasoline here in the states, many other parts of the world know it by the term petrol, or sometimes petrogasoline. From a chemical standpoint, this low-density fuel is very volatile, not only because of its natural makeup, but also because of the numerous additives that can be mixed in. Some of these additives include lead, ethanol, and dye [see also The Guide To The Biggest Companies In Every Major Commodity Sector ].

Gasoline itself was not invented, but rather, is a byproduct of the petroleum industry, namely from the production of kerosene and refining of crude oil. It was thrust into popularity with the introduction of automobiles, which had the option of using various fuels sources, but ultimately decided upon gasoline for its strong combustion properties. Since then, numerous ways have been invented to improve the quality of gasoline as it is refined from crude oil all over the world. Gasoline can be a particularly nasty thorn in a consumers side, due to prices at the pump being highly volatile as the prices of crude are known for their dramatic price swings over small periods of time.

From an investment standpoint, the term petrol or gasoline, refers to Reformulated Gasoline Blendstock for Oxygen Blending (RBOB), which is simply the term given to unleaded gas futures. Seasonally, gas futures tend to dip in the winter months, November and December, and reach their peaks between April and May. Because the United States is the largest consumer of gasoline, how our nation uses gasoline can have a major impact on global prices [see also Commodity Investing: Physical vs. Futures ].

Physical Properties Of RBOB Gasoline

As mentioned above, gasoline is a natural byproduct of crude oil. For every three barrels of crude oil refined, approximately two barrels of gasoline can be salvaged. Refining this essential fuel can be done in a variety of different ways, with the most popular being forms of cracking. Cracking is a process where hydrocarbon molecules are broken up by heat and pressure, into lighter molecules. There are various forms of this process, including thermal cracking (the most popular), and catalytic cracking. Other production/refining methods include polymerization, alkylation, and isomerization.

One important factor to understand about gasoline is its octane rating. Internal combustion engines, like those found in automobiles, burn fuel in controlled processes. The higher the octane rating, the higher the compression rate, with a more efficient fuel capable of a higher output than those with a lower octane rating. This is the reason why some cars only accept certain kinds of fuel, and why there are price discrepancies among various gas options at the pump [see also Three Mining Companies With Robust Yields ].

Due to gasolines widespread use, it has come under fire for numerous health and environmental concerns over the last few decades. From a health standpoint, the fuel stores numerous chemicals that are carcinogenic, and can be a danger to the general public if a leak were ever to occur. This means that storage tanks, delivery trucks, and refining plants present the most dangerous threats of the chemical being released into the environment. Aside from its health hazards, gasoline has long been under the gun for contributing to greenhouse gases and global climate change. As the worlds need for energy only increases, many call for alternative energy solutions to displace gasoline, but for the time being, this fuel has a vice-like grip on the global economy, and wont be going anywhere anytime soon.

Uses Of RBOB Gasoline

The most prolific uses of RBOB gasoline is fuel for various products like cars, lawn mowers, generators, pressure washers, and many other common household appliances. But it can also be used for other things like removing paint or grease, and is even used in numerous pesticides and weed killers [see also Invest Like Jim Rogers With These Three Agriculture Stocks ].

RBOB Gasoline Supply And Demand

The statistics for RBOB gasoline are not perfect due to the fact that production and consumption is measured by crude oil rather than gasoline itself. The figures below represent global consumption and production of crude oil, of which gasoline is derived: