RBOB Sep Vs Oct

Discussion in 'Commodity Futures' started by TraDaToR, Apr 15, 2010.

  1. TraDaToR


    Hello energy traders,

    Can you please explain why all expiries up to september trade in the 2.30s and after that they are all in the 2.20s.

    Is it related to the end of the driving season ?

    Why such a drastic difference?

    Thanks a lot.
  2. Yes, if you look out further on the curve you will see the summer months are in backwardation to the same year winter month contracts. Pretty much the opposite in the heat for the heating winter season.
  3. TraDaToR


    OK Thanks,

    Any tips on the typical relative behaviour of the 2 sets of contracts ? Like is this discount of winter months slowly taking place from one year before and then diminishing toward expiration?
  4. i know why this happens
  5. The Summer months have the (RFG) re-formulated blended gasoline guidelines in effect which adds some "juice" to the price. :cool:
  6. TraDaToR


    I understand. thanks a lot, Nazzdack.
  7. its RVP change
  8. TraDaToR


    Thanks, and what about heating oil? Why is there a backwardation mar/apr?
  9. March is colder than April
  10. standard RVP changes involve a jump or pull back around 3-4cpg depending on if youre entering summer or winter...lower RVP makes gasoline less likely to boil off when its sitting in ur tank

    who do you trade for?
    #10     Apr 16, 2010