Wednesday, February 5, 2014

Gas ETF Gasoline commodities

Gas for vehicles is one of the planets most widely used commodities and is a byproduct of crude oil. In the United States, where gasoline is used in cars and light trucks, boats, recreational vehicles, and farm, construction and landscaping equipment, consumption was equal to about 360 million gallons per day during 2011  about one gallon each day for every person in the United States. The United States does not produce enough crude oil to match this demand for gasoline, and as a result, imports about sixty percent of the crude oil used by US refineries.

"RBOB," or reformulated gasoline blend stock for oxygen blending, is a newer blend of unleaded gas that is prepared for the addition of ten percent fuel ethanol, an alcohol based fuel produced by fermenting and distilling corn and other starch crops. Many gas stations now sell this mixture.

The biggest factor in the cost of gasoline is the price of the crude oil from which it is produced. In 2011, the retail price of gasoline was based on the cost of crude oil (68% of retail price); refining costs and profits (11%); federal and state taxes (11%); and distribution and marketing costs and profits (9%). A variety of factors influence the price of gas.

Economic and political areas of the Middle East and North Africa (MENA) region The area's valuable oil reserves, production, and refineries have caused many years of political unrest and fighting. Concern about near term and future oil supply can cause drastic movements in price.
ETF Gasoline commodities