Is the heating oil futures market seasonal?

The heating oil futures market is a very seasonably driven market. Not surprising, but the main season for heating oil is winter, this is when we see the demand and prices for heating oil at their highest, even if crude prices are stable. That’s not to say the price of crude isn’t correlated to heating oil, because it does play a major factor.

What factors affect the prices of heating oil futures?

There are many factors that can affect the prices of heating oil futures. These are some of them: Weather and seasonality: The demand for heating oil increases during the cold months of winter, driving up the price of the commodity. In the warmer months, demand declines and so does the price.

What are heating oil futures?

Heating oil is an essential commodity in places where natural gas is unavailable or too expensive. It is primarily used for heating homes and offices. Both the CME Group and the ICE offer heating oil futures contracts. Here is our archive with articles about other tradeable futures markets.