Crude Oil Prices - Since a large component of pricing heating oil is based on the price of the crude oil, fluctuations in one may incur changes in the other.
Seasonal Demand - Price volatility may change based on the perceived consumer needs for winter heating.
Weather - Since a large percentage of the consumer base for residential heating oil is in the Central and North Atlantic states, any significant cold weather or lack thereof may contribute to price volatility. Also, hurricanes along the Gulf Coast can impact production at refineries located in that region or affect terminals receiving imports.
Refining - Any changes or disruptions to refinery production is worth noting including scheduled or unscheduled shutdowns.
Industry Reports - Like crude oil and gasoline, heating oil inventories can be of significance as any unexpected increases or decreases in supply may affect price. Volatility may also increase around the release of these reports, including the weekly American Petroleum Institute and Energy Information Administration reports.
Environmental Concerns - Changes to or perceived issues regarding the emissions from residential oil burners may also be worth nothing.
Disclaimer: There is risk of loss in all commodities trading. Losses can exceed your account size and/or margin requirements. Commodities trading can be extremely risky and is not for everyone. Some option strategies have unlimited risk. Educate yourself on the risks and rewards of such investing prior to trading. Futures Press Inc., the publisher, and/or its affiliates, staff or anyone associated with Futures Press, Inc. or www.learnaboutfutures.com, do not guarantee profits or pre-determined loss points, and are not held monetarily responsible for the trading losses of others (subscribers or otherwise). Past results are by no means indicative of potential future returns. Options DO NOT necessarily move lock step with the underlying futures contract. Information provided is compiled by sources believed to be reliable. Futures Press, Inc., and/or its principals, assume no responsibility for any errors or omissions as the information may not be complete or events may have been cancelled or rescheduled. Any copy, reprint, broadcast or distribution of this report of any kind is prohibited without the expressed written consent of Futures Press, Inc.
