Trading Unleaded Gas as a Commodity

The American motorist may well remember the first indications of price volatility in the gasoline market, when prices at the pump skyrocketed following the Yom Kippur War of 1973. Oil supply disruptions occurred again in 1979, when the fall of the Shah of Iran sent gasoline prices climbing sharply.

Gasoline prices and allocation controls in effect at the time had the perverse effect of generally keeping prices higher than market-clearing levels. Controls were removed in early 1981, and the NYMEX Division New York Harbor leaded gasoline futures contract was introduced soon after, giving gasoline refiners, marketers, and large consumers a method of managing their price risk for the first time. Unleaded Gas Trading: A High Volume Market

Gasoline is the largest single volume refined product sold in the United States and accounts for almost half of national oil consumption. It is a highly diverse market, with hundreds of wholesale distributors and thousands of retail outlets, often making it subject to intense competition and price volatility.

The NYMEX Division New York harbor gasoline futures contract trades in units of 42,000 gallons (1,000 barrels). It is based on delivery at petroleum products terminals in the 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.

Gasoline is the largest single volume refined product sold in the United States and accounts for almost half of national oil consumption. It is a highly diverse market, with hundreds of wholesale distributors and thousands of retail outlets, often making it subject to intense competition and price volatility.

Unleaded Gas Commodities: Futures & Options

The NYMEX Division New York harbor gasoline futures contract trades in units of 42,000 gallons (1,000 barrels). It is based on delivery at petroleum products terminals in the 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.Along with the futures contracts, options contracts, calendar spread options contracts, crack spread options contracts, and average price options contracts provide a slate of flexible, liquid financial instruments.

More Information on Unleaded Gas Trading

Edge Financial Group is registered and licensed as an Introducing Broker with the Commodity Futures Trading Commission, the federal regulatory agency of futures and options. We are also a member of the National Futures Association, a self-regulatory agency working with the Commodities Futures Trading Commission. Our firm is fully licensed.

Please call to speak with an account executive: 1.866.986.EDGE