What Are Heating Oil Futures? HO Explained
Learn what HO Heating Oil futures are: 42,000-gallon Harbor contracts quoted in dollars per gallon, their $4.20 outright tick, and ULSD physical delivery.
Direct answer
Heating Oil futures, commonly identified as HO, are NYMEX contracts for 42,000 U.S. gallons of ultra-low-sulfur diesel quoted in U.S. dollars and cents per gallon. On CME Globex, an ordinary outright minimum movement of 0.0001 USD per gallon equals $4.20 per contract. Standard HO futures are physically deliverable in New York Harbor as IRS-dyed ULSD meeting Colonial Fungible Grade 62 rather than cash settled.
HO names a dated Harbor diesel agreement, not a retail fuel quote
HO is the product root for NYMEX Heating Oil futures. A complete agreement also has a contract month and year, so a value displayed beside HO is not automatically a current heating-fuel retail price or a perpetual diesel holding. It is a labelled observation of a wholesale futures contract, and the label determines which rules and delivery process apply.
How to read Heating Oil futures quotes shows which fields make an observation usable. Heating Oil futures expiration and delivery explains why the named month matters when a contract approaches its delivery period.
The 42,000-gallon HO unit converts a quoted price into contract dollars
Chapter 150 sets one standard HO contract at 42,000 U.S. gallons, or 1,000 barrels, of pure hydrocarbon ULSD free of renewables and contaminants. Because quotation is dollars per gallon, a one-cent move per gallon equals $420 per contract. The unit describes the standardized quantity; it is not a claim about an account balance, margin, or appropriate order size.
Futures tick value and contract multipliers derives the HO $4.20 outright tick from the 42,000-gallon unit. Futures position sizing treats that contract unit, the number of contracts, and an account's own limits as three separate inputs.
HO outright ticks price Harbor diesel in ten-thousandths
For an ordinary HO outright trade on CME Globex, the minimum fluctuation is 0.0001 USD per gallon, or $4.20 per contract. TAS prints track settlement in their own band, so a TAS observation and an outright observation need different labels even when both sit near the same price. Volume is measured at 60 degrees Fahrenheit under ASTM D-1250 Table 6B, which keeps every gallon figure on the same thermal footing.
Record the execution type before calculating a movement or comparing two displayed prices. Mistaking a per-gallon quote for a per-barrel quote understates every HO calculation forty-two-fold.
IRS-dyed ULSD backs the HO contract design
HO oil delivered against the contract must be IRS-dyed ultra-low-sulfur diesel meeting Colonial Fungible Grade 62 delivery specifications for New York Harbor sale. The buyer reimburses heating-oil tax the seller has paid or will pay, and delivery can run by barge, tanker, book transfer, or stock transfer at the seller's facility. Chapter 150 points to Chapter 7 for the broader framework, and facility plus clearing arrangements matter for an actual open position.
Cash-settled versus physically delivered futures draws the general settlement-design line, and HO sits on the physically deliverable side. What are RBOB Gasoline futures covers the sister refined contract for readers comparing the two Harbor fuels.
A workable HO record separates quotation facts from account facts
Before relying on an HO number, preserve the root, month-year, dollars-per-gallon convention, trade or quote type, price field, source, timestamp, session, and data status. Futures contract month codes helps turn a compact HO symbol into the agreement whose delivery calendar applies.
Margin is collateral, not a substitute for the 42,000-gallon contract unit or a recommendation to open a position. Futures margin versus leverage explains that distinction without inferring an account-specific requirement.
This guide explains standard Heating Oil futures mechanics. It does not provide a live diesel price, a fuel forecast, margin requirement, trade recommendation, or broker delivery instruction. Current NYMEX rules, data terms, clearing procedures, and account documents govern a particular contract.
Common questions
What does HO mean in futures?
HO is the NYMEX product root for Heating Oil futures. Add a contract month and year to identify the particular standardized agreement.
How many gallons does one HO contract represent?
One standard HO contract represents 42,000 U.S. gallons, or 1,000 barrels, of ULSD measured at 60 degrees Fahrenheit.
What is the ordinary HO tick value?
The ordinary CME Globex outright minimum movement is 0.0001 U.S. dollar per gallon, equal to $4.20 per standard HO contract. One full cent equals $420.
What grade of diesel does HO deliver?
IRS-dyed ultra-low-sulfur diesel meeting Colonial Fungible Grade 62 delivery specifications for New York Harbor sale, a pure hydrocarbon oil free of renewables and contaminants.
Are Heating Oil futures cash settled?
No. Standard HO futures are physically deliverable in New York Harbor under Chapter 150 and the applicable delivery procedures. Current clearing and facility documents determine the handling of a particular open position.