New gasoline grade will soon trade, but at what price?

摘要

The U.S. already boasts perhaps 100 distinctive grades of gasoline, thanks to sulfur regulations, boutique rules, and Reid Vapor Pressure specs. It will soon see the debut of still more blends, thanks to more widespread ethanol blending. East Coast traders believe that CBOB - a conventional base stock for oxygenated blending - will see a market develop in the next 90 days. It will trade at the request of downstream marketers who don't need 87-octane for their E10 blends, but will need a made-to-order grade with lower RVP specs in order to comply with summer Clean Air Act standards.