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Gulf Coast Gasoline 
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Gulf Coast Gasoline (Physical) futures are an outright gasoline contract between a buyer and a seller. The contract:

  • Is based on M Grade conventional gasoline
  • Offers risk management coverage for gasoline traded on the Gulf Coast, a primary refining center

Things to know:

  • Traded via open outcry, the CME Globex electronic trading system, and off-exchange for clearing only through CME ClearPort
  • Physically delivered

About Gulf Coast Gasoline
The Gulf Coast gasoline futures contract gives market participants the opportunity to target their risk management coverage for gasoline traded on the Gulf Coast, the primary refining center. This region is essential to gasoline refiners and retailers because the Gulf Coast serves as one of two key trading centers in the cash market; the other being New York.

The Gulf Coast gasoline futures contract, coded LR, was launched to provide greater price transparency to the gasoline market. It features physical delivery of M-grade conventional gasoline into the Colonial Pipeline ratably in increments of 25 contracts during each cycle of the delivery month. Delivery takes place following termination of trading. The final settlement price is based on the average-weighted price of trades done in the closing range on termination day. Delivery shall be made F.O.B. the Colonial Pipeline at the injections station selected by the Seller at Pasadena, Texas; Houston, Texas; Hebert, Texas; Port Arthur, Texas; Lake Charles, Louisiana; Krotz Springs, Louisiana; Baton Rouge, Louisiana; Collins, Mississippi,; and Moundville, Alabama.