Propane is a by-product of natural gas processing and oil refining. U.S. demand is approximately one-third that of heating oil. Propane is used in diverse markets: residential cooking, crop-drying in agriculture, space heating in homes and industry, and as a feedstock for the production of vital petrochemicals. Natural gas utilities often store propane for use [...]
Continue →Why do gasoline prices fluctuate? Retail gasoline prices are mainly affected by crude oil prices and the level of gasoline supply relative to demand. Strong and increasing demand for gasoline and other petroleum products in the United States and the rest of the world is exerting intense pressure on available supplies. Even when crude oil [...]
Continue →Heating oil accounts for about 25% of the yield of a barrel of crude oil, the second largest cut after gasoline (petrol). The heating oil futures contract trades in units of 42,000 U.S. gallons (1,000 barrels) and (for the USA) is based on delivery in the New York harbor. Options on futures, calendar spread options [...]
Continue →What are heating oil futures? Heating oil futures were first traded on the New York Mercantile Exchange (NYMEX) in 1978. With the United States lifting price controls on heating oil in the mid 1970’s, producers and consumers needed a way to hedge their price risks. Heating oil futures provide a liquid market place where they [...]
Continue →Gasoline is the largest single volume refined product sold in the United States and accounts for almost half of national oil consumption. It is a highly diverse market, with hundreds of wholesale distributors and thousands of retail outlets, making it subject to intense competition and price volatility.The unleaded gas futures contract specifications conform to those [...]
Continue →Crude oil is the world’s most actively traded commodity, and the NYMEX Division light sweet crude oil futures contract is the world’s most liquid forum for crude oil trading, as well as the world’s largest-volume futures contract trading on a physical commodity. Because of its excellent liquidity and price transparency, the contract is used as [...]
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