Heating Oil Futures Trading Basics

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Heating Oil Futures Trading Basics

Wednesday, April 8, 2020 : NYMEX Heating Oil (Ultra Low Sulfur Diesel) Price for May delivery closed down $0.0 168 at $ 1.0 107 per gallon.

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Heating Oil

Trading Unit
Heating Oil Futures: 42,000 U.S. gallons (1,000 barrels).

Heating Oil Options: One NYMEX Division heating oil futures contract.

Trading Hours
Futures and Options: 9:50 A.M. to 3:10 P.M., for the open outcry session.

After-hours trading is conducted via the NYMEX ACCESS® electronic trading system from 7 P.M. to 9 A.M. on Sundays and 4 P.M. to 9 A.M., Mondays through Thursdays. All times are New York time.

Trading Months
Heating Oil Futures: Trading is conducted in 18 consecutive months commencing with the next calendar month (for example, on October 2, 1998, trading occurs in all months from November 1998 through April 2000).

Options: 18 consecutive months.

Price Quotation
Heating Oil Futures and Options: In dollars and cents per gallon: for example, $0.5277 (52.77ў) per gallon.

Minimum Price Fluctuation
Heating Oil Futures and Options: $0.0001 (0.01ў) per gallon ($4.20 per contract).

Maximum Daily Price Fluctuation
Heating Oil Futures: Initial limits of $0.06 (6ў) per gallon are in place in all but the first two months and rise to $0.09 (9ў) per gallon if the previous day’s settlement price in any back month is at the $0.06 per gallon limit. In the event of a $0.20 (20ў) per gallon move in either of the first two contract months, limits on all months become $0.20 per gallon from the limit in place in the direction of the move following a one-hour trading halt.

Options: No price limits.

Last Trading Day
Heating Oil Futures: Trading terminates at the close of business on the last business day of the month preceding the delivery month.

Options: Trading ends three business days before the
underlying futures contract.

Exercise of Options
By a clearing member to the Exchange clearinghouse not later than 5:30 P.M., or 45 minutes after the underlying futures settlement price is posted, whichever is later, on any day up to and including the option’s expiration.

Options Strike Prices
Twenty strike prices in one-cent-per-gallon increments above and below the at-the-money strike price, and the next ten strike prices in five-cent increments above the highest and below the lowest existing strike prices for a total of at 61 strike prices. The at-the-money strike price is the nearest to the previous day’s close of the underlying futures contract. Strike price boundaries are adjusted according to the futures price movements.

Delivery
Heating Oil is F.O.B. seller’s facility in New York Harbor, ex-shore. All duties, entitlements, taxes, fees, and other charges paid. Requirements for seller’s shore facility: capability to deliver into barges. Buyer may request delivery by truck, if available at the seller’s facility, and pays a surcharge for truck delivery. Delivery may also be completed by pipeline, tanker, book transfer, or inter- or intra-facility transfer. Delivery must be made in accordance with applicable federal, state, and local licensing and tax laws.

Delivery Period
Deliveries may only be initiated the day after the fifth business day and must be completed before the last business day of the delivery month.

Alternate Delivery Procedure (ADP)
An Alternate Delivery Procedure is available to buyers and sellers who have been matched by the Exchange subsequent to the termination of trading in the spot month contract. If buyer and seller agree to consummate delivery under terms different from those prescribed in the contract specifications, they may proceed on that basis after submitting a notice of their intention to the Exchange.

Exchange of Futures for, or in Connection with, Physicals (EFP)
The commercial buyer or seller may exchange a futures position for a physical position of equal quantity by submitting a notice to the Exchange. EFPs may be used to either initiate or liquidate a futures position.

Grade and Quality Specifications
Generally conforms to industry standards for fungible No. 2 heating oil.

Inspection
The buyer may request an inspection for grade and quality or quantity for all deliveries, but shall require a quantity inspection for a barge, tanker, or inter-facility transfer. If the buyer does not request a quantity inspection, the seller may request such inspection. The cost of the quantity inspection is shared equally by the buyer and seller. If the product meets grade and quality specifications, the cost of the quality inspection is shared jointly by the buyer and seller. If the product fails inspection, the cost is borne by the seller.

Position Limits
7,000 contracts for all months combined, but not to exceed 1,000 in the last three days of trading in the spot month or 5,000 in any one month.

Margin Requirements
Margins are required for open Heating Oil futures or short options
positions. The margin requirement for an options purchaser will never exceed the premium.

Trading Symbols
Futures: HO
Options: OH

Heating oil futures

About NYMEX heating oil futures

Heating oil, also known as No. 2 fuel oil, accounts for about 25% of the yield of a barrel of crude, the second largest “cut” after gasoline. The heating oil futures contract at the New York Mercantile Exchange 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.

In addition to heating oil futures, NYMEX also lists futures on crude oil, natural gas, and unleaded gasoline. All of these products are available to trade through Schwab Futures.

NYMEX heating oil futures specifications

Heating oil futures, New York Mercantile Exchange, symbol HO. Minimum Tick Size 0.0001 cent per gallon, worth $4.20 per contract.

Electronic trading is conducted from 6:00 p.m. U.S. ET until 5:00 p.m. U.S. ET via the CME Globex® trading platform, Sunday through Friday.

Primary heating oil futures contracts trade every calendar month, from January through December.

Important disclosures

Securities and other non-futures related brokerage products are offered by Charles Schwab & Co., Inc. (Member SIPC) (“Schwab”). Trading in futures and futures options is offered by Charles Schwab Futures. Deposit and lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender (“Schwab Bank”).

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the options disclosure document titled Characteristics and Risks of Standardized Options.

Futures trading carries a high level of risk and is not suitable for all investors. Certain requirements must be met to trade futures. Please read the Risk Disclosure Statement for Futures and Options on our website, prior to applying for an account.

Bank sweep accounts are generally held at Charles Schwab Bank. Funds deposited at Schwab Bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 when aggregated with all other deposits held by you in the same capacity at Schwab Bank. Funds on deposit at Schwab Bank are not deposits or obligations of Charles Schwab & Co., Inc. and may not be covered by the Securities Investor Protection Corporation (SIPC). NOTE: Funds deposited at an FDIC insured institution are insured, in aggregate, up to $250,000 per depositor, per insured institution based upon account type by the Federal Deposit Insurance Corporation (FDIC).

The Charles Schwab Corporation provides a full range of brokerage, banking and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (Member SIPC), offers investment services and products, including Schwab brokerage accounts. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides deposit and lending services and products. Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons.

This site is designed for U.S. residents. Non-U.S. residents are subject to country-specific restrictions. Learn more about our services for non-U.S. residents.

© 2020 Charles Schwab & Co., Inc. All rights reserved. Member SIPC . Unauthorized access is prohibited. Usage will be monitored.

Crude Oil WTI May ’20 (CLK20)

Crude Oil WTI Futures Market News and Commentary

May WTI crude oil (CLK20) this morning is up +1.05 (+4.18%), Jun Brent crude oil (CBM20) is up +1.33 (+4.05%), and May RBOB gasoline (RBK20) is up +0.0428 (+6.31%).

The energy complex is moving sharply higher this morning with Brent crude and RBOB gasoline at 3-week highs after OPEC+ agreed to crude production cuts. OPEC+ today agreed to cut its crude output by 10 million bpd for two months and said it plans to seek an additional cut of 5 million bpd from G-20 countries, which have a meeting set for Friday.

Comments from Russian Energy Minister Novak today were supportive for crude prices as he urged other crude-producing countries to join in coordinated crude production cuts when he said, “we think it’s justified to increase the number of counties that can take part in joining efforts to stabilize the market.”

A decline in the dollar index today to a 1-week low is supportive for crude prices as is today’s rally in the S&P 500 to a 4-week high, which bolsters co. Read more

energies Futures News

Phil Flynn – The PRICE Futures Group Thu Apr 9, 7:53AM CDT

Petroleum future prices surge even though U.S. commercial petroleum stocks increased by a record-breaking 32.98 million barrels last week, the largest.

Nick Mastrandrea – Market Tea Leaves Thu Apr 9, 5:44AM CDT

Yesterday the markets gained ground with the thought that coronavirus had reached its apex in New York. Will this uptrend continue today? Read on to learn.

Carley Garner – DeCarley Trading Wed Apr 8, 11:39AM CDT

If oil stabilizes, will sugar?

Bill Baruch – Blue Line Futures Wed Apr 8, 8:58AM CDT

Our audited Trade Alerts program is up 13.9% in 2020. Gained 3.9% in March.

Anton Kolhanov – Kolhanov.com Wed Apr 8, 8:09AM CDT

An uptrend will start as soon, as the pair rises above resistance level 24.12, which will be followed by moving up to resistance level 25.28

Phil Flynn – The PRICE Futures Group Wed Apr 8, 7:54AM CDT

Oil prices are bouncing back after a pre-American Petroleum Institute(API) report sell-off that was expected to show a massive increase in supply. The.

Stocks: 15 20 minute delay (Cboe BZX is real-time), ET. Volume reflects consolidated markets. Futures and Forex: 10 or 15 minute delay, CT.

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The All Futures page lists all open contracts for the commodity you’ve selected. Intraday futures prices are delayed 10 minutes, per exchange rules, and are listed in CST. Overnight (Globex) prices are shown on the page through to 7pm CST, after which time it will list only trading activity for the next day. Once the markets have closed, the Last Price will show an ‘s’ after the price, indicating the price has settled for the day. The page will always show prices from the latest session of the market.

End-of-Day prices are updated at 8pm CST each evening, and includes the previous session volume and open interest information.

The Cash Contract is listed as the first contract at the top of the page.

Data Updates

For pages showing Intraday views, we use the current session’s data, with new price data appear on the page as indicated by a “flash”. Stocks: 15 minute delay (Cboe BZX data for U.S. equities is real-time), ET. Volume reflects consolidated markets. Futures and Forex: 10 or 15 minute delay, CT.

The list of symbols included on the page is updated every 10 minutes throughout the trading day. However, new stocks are not automatically added to or re-ranked on the page until the site performs its 10-minute update.

Page Sort

Pages are initially sorted in a specific order (depending on the data presented). You can re-sort the page by clicking on any of the column headings in the table.

Views

Most data tables can be analyzed using “Views.” A View simply presents the symbols on the page with a different set of columns. Site members can also display the page using Custom Views. (Simply create a free account, log in, then create and save Custom Views to be used on any data table.)

Each View has a “Links” column on the far right to access a symbol’s Quote Overview, Chart, Options Quotes (when available), Barchart Opinion, and Technical Analysis page. Standard Views found throughout the site include:

    Main View: Symbol, Name, Last Price, Change, Percent Change, High, Low, Volume, and Time of Last Trade.

Technical View: Symbol, Name, Last Price, Today’s Opinion, 20-Day Relative Strength, 20-Day Historic Volatility, 20-Day Average Volume, 52-Week High and 52-Week Low.

Performance View: Symbol, Name, Last Price, Weighted Alpha, YTD Percent Change, 1-Month, 3-Month and 1-Year Percent Change.

  • Fundamental View: Available only on equity pages, shows Symbol, Name, Weighted Alpha, Market Cap, P/E Ratio. Earnings Per Share, Beta, Return on Equity, and Price/Sales
  • Data Table Expand

    Unique to Barchart.com, data tables contain an “expand” option. Click the “+” icon in the first column (on the left) to “expand” the table for the selected symbol. Scroll through widgets of the different content available for the symbol. Click on any of the widgets to go to the full page.

    Horizontal Scroll on Wide Tables

    Especially when using a custom view, you may find that the number of columns chosen exceeds the available space to show all the data. In this case, the table must be horizontally scrolled (left to right) to view all of the information. To do this, you can either scroll to the bottom of the table and use the table’s scrollbar, or you can scroll the table using your browser’s built-in scroll:

    • Left-click with your mouse anywhere on the table.
    • Use your keyboard’s left and right arrows to scroll the table.
    • Repeat this anywhere as you move through the table to enable horizontal scrolling.
    FlipCharts

    Also unique to Barchart, FlipCharts allow you to scroll through all the symbols on the table in a chart view. While viewing FlipCharts, you can apply a custom Chart Template, further customizing the way you can analyze the symbols. FlipCharts are a free tool available to Site Members.

    Download

    Download is a free tool available to Site Members. This tool will download a .csv file for the View being displayed. For dynamically-generated tables (such as a Stock or ETF Screener) where you see more than 1000 rows of data, the download will be limited to only the first 1000 records on the table. For other static pages (such as the Russell 3000 Components list) all rows will be downloaded.

    Free members are limited to 5 downloads per day, while Barchart Premier Members may download up to 100 .csv files per day.

    Should you require more than 100 downloads per day, please contact Barchart Sales at 866-333-7587 or email [email protected] for more information or additional options about historical market data.

    cmdtyNewswires Commentary

    cmdtyNewswires is Ag market commentary for Grains and Oilseeds, Energy, Gold, Silver, Cocoa, Coffee, and Sugar markets.

    Futures News

    View the latest top stories from our trusted partners, with a focus on today’s futures and commodity markets.

    Heating Oil Futures Trading Basics

    Trading oil commodities has been extremely popular ever since the invention of the first automobile. Day in and day out traders choose oil as their instrument of choice for its huge liquidity. However, traditional oil trades are slowly but surely falling by the wayside as investors far and wide are opting for the lucrative futures market. With many types of oil futures for investors to choose from, speculative oil trades are more popular now than ever before.

    Crude Oil (WTI)

    Light Sweet Crude Oil (WTI) options and futures are hands down the most actively traded energy instrument in the world. Though the prices of crude oil futures seem to be gaining in popularity every single day, they have been used by investors and traders for risk management and price discovery for over 25 years.

    There are many intriguing features of this particular speculative instrument, but perhaps the most compelling reason to trade WTI futures is the deep liquidity that it provides. There are more than 900,000 crude oil futures contracts being executed daily. This makes it extremely easy for traders to enter and exit the market whenever they want. Add to that the 7.5 million lots/barrels of open interest occurring on the market daily and traders have all that they could ask for in a trading instrument.

    Brent Crude Oil

    Known as Last Day Financial futures, Brent crude oil futures operate quite differently than normal crude oil prices. The futures contracts are essentially an outright crude oil contract between the seller and the buyer. Based on international benchmark grade North Sea crude oil, Brent crude oil is also used as a differential trade to the popular light sweet crude oil futures contracts.

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    There are approximately 500,000 barrels of Brent crude oil being produced each day. Mostly refined in Northwest Europe, a significant amount of Brent crude oil makes its way to the east coast of the U.S., the Gulf of Mexico, and the Mediterranean, where companies utilize spot trades with no formal contracts outlining terms.

    Based on the ICE Brent Crude Oil Futures, these futures trades are financially settled and are traded for clearing only, using off-exchange as an exchange of futures for physicals (EFP) and an exchange of futures for swaps (EFS).

    Heating Oil Futures

    Heating oil is also known as Number 2 oil or a distillate. During the crude oil refining process, approximately 50 percent becomes gasoline and 25 percent becomes heating oil. The major refineries in the Gulf States produce nearly 85 percent of the heating oil used in the U.S., while the rest is imported from Venezuela and Canada.

    When trading heating oil futures contracts, it is critical to watch the weather in the northeast during the winter months, since this is where most of the heating oil is used. During these winter months sharp rises and active rallies can often provide lucrative opportunities for traders. However, the key to profiting on heating oil futures during this time period is looking for unseasonably cold periods where demand for heating oil increases. Also, keep in mind that heating oil usually follows the price movement of crude oil.

    Gasoil Futures

    The ICE Gasoil future contract is the largest petroleum futures contract in the world. Originally introduced in 1981, the ICE Gasoil futures contract has become the premier refined oil pricing reference around the world today. Similar to the ICE Crude Oil WTI, it offers traders deep liquidity and the versatility offered by a global leader.

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