EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Heating Oil (HO) Natural Contract

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Last but not least, heating oil, or HO. It's sometimes referred to as number two fuel oil. Every contract is 42,000 gallons. We are still dealing with US dollars and cents per barrel. Minimum price fluctuation is 1/1000 of a penny per gallon. The delivery point is the same as for RBOB, and that is free onboard or delivered to the petroleum products terminals in New York Harbor. The last trading day is the last day of the month preceding the moth of production and the margin requirements are price dependent. Everything else pretty much remains the same under the standardized NYMEX contracts.