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.)