Heating
oil is called No. 2 fuel, and about 25% of a barrel of crude oil is produced by
heating oil. The contract initially attracted heating oil wholesalers and
end-users with huge consumption, which were later used to hedge against diesel
and jet fuel. Today, the contract attracts business parties, including
refineries, wholesalers, heating oil retailers, truckers, airlines, and marine
transportation companies, to participate in the contract, using the contract as
a risk management and tools for price discovery.
Contributing factors:
1. Trends in the Organization of Petroleum Exporting Countries (OPEC)
2. The price of oil
3. Political and economic situation in major producing countries
4. War, blockade, embargo or economic sanctions
5. Accidents in tubing and storage tanks
6. US Petroleum Information
7. Alternative energy development
8. government policy
9. Global economic situation
10. Industrial development needs
11. Seasonal factors (such as the length of winter / temperature, etc.)
