If you are interested in trading Heating Oil futures it is helpful to become familiar with the history of the Heating Oil market. Heating oil is one of the most important physical commodities in the global economy. Heating oil futures are one of the most actively traded futures contracts and represent the primary US benchmark for heating oil prices.

The heating oil futures contract trades in units of 42,000 gallons (1,000 barrels) and is based on delivery in New York harbor, the principal cash market trading center. Options on futures, calendar spread options contracts, crack spread options contracts, and average price options contracts give market participants even greater flexibility in managing price risk.

Heating oil is very similar to diesel fuel, and jet fuel. They are all classified as distillates. Therefore, 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 NYMEX Division New York harbor heating oil futures.