Future of US Heating Oil Lies in ULSD Futures

摘要

As the world moves toward low-sulfur fuels, the trading community is adapting to the changing times. In less than two years, the CME Group is phasing out its Nymex New York Harbor (NYH) Number 2 Heating Oil futures contract and replacing the basis for jet fuel pricing with the NYH Ultra Low Sulfur Diesel (ULSD) contract that started trading on the exchange on January 4. Nymex has been working on the transition for several years in anticipation of most Northeast states moving to ULSD as the standard fuel for home and residential heating in a bid to meet clean air regulations.