Heating oil is a petroleum product used for space heating and water heating in residential and commercial buildings. It is traded as a futures contract on the New York Mercantile Exchange (NYMEX) and is a key benchmark for distillate fuel prices.
Description: Heating oil, also known as No. 2 fuel oil, is a distillate fuel derived from crude oil. It is primarily used in oil-fired boilers and furnaces for heating homes and businesses, especially in regions with cold climates. The commodity is traded on the NYMEX under the ticker HO, with futures contracts representing 42,000 gallons. Heating oil prices are influenced by crude oil prices, seasonal demand, refinery capacity, and geopolitical events. It serves as a hedge for heating costs and a speculative instrument for traders. The market is regulated by the Commodity Futures Trading Commission (CFTC) and is part of the broader energy complex, including crude oil, gasoline, and natural gas.
Established / Launched: 1978
Founder / Issuer: New York Mercantile Exchange (NYMEX)