CBOB is the conventional gasoline blendstock used across most of the U.S., and it trades at a differential to the RBOB benchmark that shifts with region and season. InHedge structures and monitors gasoline hedges for companies that want to manage their exposure more closely. Talk to the InHedge hedging desk →
CBOB (Conventional Blendstock for Oxygenate Blending) serves as a base for conventional gasoline. Unlike reformulated blends, it is primarily used in regions with less stringent environmental regulations, such as suburban and rural areas in the U.S., Mexico, and parts of Central America. CBOB is cost-efficient and adaptable, meeting the fuel needs of areas with lower regulatory requirements.
Characteristics of CBOB
CBOB is refined to ensure compatibility with ethanol blending, allowing distributors to adjust proportions based on local regulations. This flexibility makes it a widely used solution for producing finished gasoline at lower costs while maintaining quality for internal combustion engines.
Factors influencing its price
CBOB prices are largely driven by crude oil costs, refining capacity, and ethanol prices. Seasonal demand surges during summer, particularly for transportation and travel, can also impact its market value.
CBOB gasoline in 2026
CBOB is the workhorse of the U.S. gasoline pool, blended with ethanol to make the E10 sold across most of the country. Reformulated gasoline is required in about 17 states, roughly a quarter of U.S. demand, so outside those areas CBOB is the standard grade, and it is the most liquid product in the Gulf Coast spot market.
CBOB does not trade as its own futures contract. It prices at a differential to RBOB, usually a small discount, set in the spot market and moving with region, season, and ethanol economics. With RBOB in the low $3 per gallon range through mid-2026, CBOB followed close behind.
This is the grade most relevant to Mexico. The Gulf Coast, where CBOB is most liquid, is where most U.S. gasoline bound for Mexico loads, and Mexico bought about 486,000 barrels per day of U.S. gasoline in 2025. A hedge on RBOB still leaves the CBOB differential open, which is why the spread is worth watching.
Data as of mid-July 2026. For current levels, talk to the InHedge hedging desk.
Future prospects
While its continues to be a staple in conventional fuel markets, its usage may decline as stricter environmental standards gain traction. For now, its affordability and adaptability ensure its role in meeting regional fuel demands.
Frequently asked questions
What is CBOB gasoline?
CBOB, Conventional Blendstock for Oxygenate Blending, is the base gasoline blended with ethanol to make conventional E10 fuel, used across most of the U.S.
How does CBOB differ from RBOB?
RBOB is reformulated for areas with stricter clean air rules and trades as a NYMEX futures contract. CBOB is the conventional grade, priced in the spot market at a differential to RBOB.
What is the CBOB price in 2026?
CBOB tracks RBOB, which ran in the low $3 per gallon range through mid-2026, adjusted by the CBOB differential. Prices move daily. For current levels, talk to the InHedge hedging desk.
What moves CBOB prices?
Crude oil, refining capacity, ethanol prices, regional supply and demand, and the seasonal shift between summer and winter grades.
How do companies in Mexico hedge gasoline?
Through RBOB futures plus attention to the Gulf Coast CBOB differential, sized to real volume. InHedge designs and executes these structures. See energy hedging at InHedge.