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Heating Oil Futures TradingTicker Symbol: HO 1Exchange: NYMEX 2 Hours of Trading: 9:00 Am to 2:30 PM Eastern Standard Time Unit/Contract Size: 42,000 gallons or 1,000 barrels Price Quote: Dollars and cents/gallon Min. Price Change: $.01 per gallon or $4.20 per contract Max Price Fluctuation: $.25 per gallon or $10,500 per contract Months of Trading: 18 consecutive months, from January through December Last Trading Day: At the conclusion of final day of month preceding the delivery month. 1 Referred to as No. 2 fuel oil 2 Heating oil is traded ICE Futures besides the NYMEX. Heating Oil is petroleum that represents approximately 25 % of the crude bbl, which is a hedge tool used by oil refineries, transportation companies and other consuming enterprises seeking risk management. Diesel fuel is similar in chemical composition (and a distillate likewise), while jet fuel trades at cash market at premium to heating oil futures. The switch from coal following World War II marked a surge in the market for heating oil. Following the introduction of the energy futures contract by the NYMEX, in 1978, natural market conditions outside of the bounds of New York indicated that heating oil futures had found another purpose, hedging. And its popularity grew. The main market of consumption for heating oil lies in the Northeastern section of the U.S.. Although natural gas is often the preferred choice over heating oil, the latter is consumed based on seasonal product availability, with the majority of consumption between the months of March through October. When there is a perceived added need for heating oil, like a temperature hike, or when the price of crude oil is affected, the price of heating oil can be affected. Beyond the resource of the Northeast Home Hearting Oil Reserve, established in July, 2000 which provides a fallback source for about 5 mil homes – inventories rely on summer and fall production by refineries and are connected with gas production since they both comprise the total percentage makeup of the bbl. Increases in production mean the prospect of having the ‘other products from the barrel’ accounted for as too, as they are connected in the production sense. |
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