Difference between revisions of "Heating oil"
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Heating oil futures contracts trade in units of 42,000 gallons, which is the equivalent of 1,000 barrels. Prices are based on delivery in [[Directory:New York, New York|New York City]] harbor, the principal cash market trading center. 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 heating oil futures. | Heating oil futures contracts trade in units of 42,000 gallons, which is the equivalent of 1,000 barrels. Prices are based on delivery in [[Directory:New York, New York|New York City]] harbor, the principal cash market trading center. 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 heating oil futures. | ||
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Revision as of 16:04, 25 August 2008
Heating oil is used to fuel furnaces within buildings. It is usually dyed to distinguish it from taxed vehicle fuel. Typically, delivery is by tanker truck to individual homes and commercial spaces, and the oil is stored in oil tanks in the basement or outside, next to the building. Leaks in older facilities are an environmental concern.
Heating oil, also known as No. 2 fuel oil, accounts for about 25% of the yield of a barrel of crude oil, the second-largest "cut" after gasoline. [1]
Market info
Among distillate fuels, the trend in recent years has seen the proportional demand for heating oil decreasing, as usage of liquified petroleum gas (LPG) has increased. [2]
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Heating oil futures contracts trade in units of 42,000 gallons, which is the equivalent of 1,000 barrels. Prices are based on delivery in New York City harbor, the principal cash market trading center. 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 heating oil futures.
Businesses operating in the heating oil sector will identify themselves by the following 5-digit NAICS codes:
References
- ^ <templatestyles src="Module:Citation/CS1/styles.css"></templatestyles>"NYMEX.com: Heating Oil". 2006. Retrieved 2006-12-21. Check date values in:
|date=(help) - ^ Template:Citation/core
<sharethis />
See also
