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| Heating Oil |
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Heating oil, also known as No. 2 fuel oil, accounts for about 25% of the yield of a barrel of crude, the second largest "cut" after gasoline. The heating oil futures contract trades in units of 42,000 gallons (1,000 barrels) and is based on delivery in New York harbor, the principal cash market trading center. Options on futures, calendar spread options contracts, crack spread options contracts, and average price options contracts give market participants even greater flexibility in managing price risk.
The heating oil futures contract is also used to hedge diesel fuel and jet fuel, both of which trade in the cash market at an often stable premium to NYMEX Division New York harbor heating oil futures.
A penultimate heating oil (BH) contract is available for electronic trading on the CME Globex® platform. The contract is financially settled and is listed for 18 months.
The NYMEX miNY™ heating oil futures contract is 50% of the size of the standard futures contract, and is also available for trading on the CME Globex® system.
The Exchange also lists for trading on the NYMEX ClearPort® trading platform a series of heating oil swap futures contracts based on crack spreads, location differentials, and differentials between NYMEX Division New York harbor heating oil futures and jet fuel and diesel fuel. Transactions in these contracts can also be consummated off-Exchange and submitted to the Exchange for clearing through the NYMEX ClearPort® clearing website. |
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