What are heating oil futures?

Heating oil is considered the second most popular byproduct of crude oil and is a mainstay in everyday life. 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.

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.

How much does a heating oil futures contract cost?

Each heating oil futures contract represents 42,000 gallons of heating oil with a minimum price fluctuation of $.0001 per gallon, or $4.20 per contract. (According to the CME Group) Contracts are deliverable for 18-consecutive months and delivery occurs at New YorkHarbor