About Heating Oil (ULSD)
The NYMEX heating oil contract now represents ultra-low sulfur diesel (ULSD) delivered in New York Harbor. It is the US benchmark for distillate fuels used by trucks, farms, ships and home heating.
What moves the heating oil (ulsd) price
- Crude oil prices, the main input cost.
- Refinery runs, outages and maintenance seasons.
- Distillate inventories reported weekly by the EIA.
- Freight and industrial activity, plus winter heating demand in the US Northeast.
Diesel is the real driver
Although the contract is still known as heating oil, it is now ultra-low sulphur diesel. Demand comes mostly from trucking, farming, construction, shipping and industry, with heating demand in the US Northeast adding a winter boost. Because diesel powers freight, its price is sensitive to economic activity and is often more volatile than crude when refinery capacity is tight.
Crack spreads and inventories
Refiners watch the gap between product and crude prices, known as the crack spread. A high diesel crack means refining is very profitable and usually that distillate stocks are low. The weekly EIA report shows US distillate inventories; levels below the seasonal average heading into winter tend to support prices. Refinery outages, export demand from Europe and Latin America, and sanctions on product exports all influence the market. Compare with WTI crude and gasoline to see refinery margins.
Contract specifications
| Benchmark future | NYMEX NY Harbor ULSD (HO), CME Group |
|---|---|
| Contract size | 42,000 US gallons (1,000 barrels) |
| Minimum tick | $0.0001 per gallon = $4.20 per contract |
| Contract months | Every calendar month |
| Settlement | Physical delivery in New York Harbor |
| Product | Ultra-low sulphur diesel, also used as heating oil |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
Contract basics
NYMEX NY Harbor ULSD (HO) covers 42,000 US gallons (1,000 barrels) and is quoted in dollars per gallon.
Quote unit
USD per gallon. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Heating Oil (ULSD) FAQ
What moves the price of heating oil (ulsd)?
Crude oil prices, the main input cost. Refinery runs, outages and maintenance seasons. Distillate inventories reported weekly by the EIA. Freight and industrial activity, plus winter heating demand in the US Northeast.
When does heating oil (ulsd) trade?
CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
What is the standard heating oil (ulsd) contract?
NYMEX NY Harbor ULSD (HO) covers 42,000 US gallons (1,000 barrels) and is quoted in dollars per gallon.
Is heating oil the same as diesel?
The NYMEX contract now specifies ultra-low sulphur diesel, which can be used both as road diesel and as heating fuel, so the prices are closely linked.
What is a 3-2-1 crack spread?
A refining margin estimate: the value of two barrels of gasoline and one of diesel minus the cost of three barrels of crude.