RBOB Sep Vs Oct

TraDaToR

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.
 
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.
 
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?
 
Quote from TraDaToR:
....please explain.....
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The Summer months have the (RFG) re-formulated blended gasoline guidelines in effect which adds some "juice" to the price. :cool:
 
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?
 
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