What is Gasoline?
Gasoline is a volatile flammable mixture of hydrocarbons (hexane and heptane and octane among others) that is derived from petroleum. Its main use is as a fuel in international combustion engines.
In making gasoline prior to the 1970's, lead compounds and other chemicals were added during processing to make leaded gasoline. In 1975 the EPA required all oil companies to phase out leaded gasoline. As such, all automobile manufacturers were required to make cars that would run on unleaded gasoline to cut down lead pollution, which would improve public health.
Uses of Gasoline
Gasoline, also known as petrol, is the most commonly used transport fuel on the planet. It is an extremely volatile hydrocarbon that is derived from crude oil. Its natural state is in the form of a liquid that has a strong solvent smell. It is primarily used to fuel internal combustion engines for motor vehicles, motorbikes, trucks, boats and other vehicles. Highly refined gasoline can also be used as aviation fuel which is referred to as aviation gasoline or avgas.
Risks of Gasoline
Gasoline is the largest single volume refined product sold in the United States and accounts for almost half of their national oil consumption. RBOB Gasoline futures, New York Mercantile Exchange, RB Minimum Tick Size: 0.0001 cent per gallon, worth $4.20 per contract and trades in units of 42,000 gallons (1,000 barrels).
Gasoline futures are a highly diverse market. There are hundreds of wholesale distributors and thousands of retail outlets, making it subject to severe competition and price volatility.