On the Chicago Mercantile Exchange (CME), energies play a pivotal role in daily trade. It doesn’t matter whether you’re an institutional hedger or retail speculator, the odds are good that there’s an ideal CME contract well-suited for your needs.
The global energy complex is a dynamic atmosphere, featuring a lineup of exciting products. From the CME’s benchmark West Texas Intermediate (WTI) crude oil contract to NY Harbor ULSD heating oil, opportunity is always afoot. Let’s dive deeper into what the NY Harbor ULSD contract is, its functionality, and a few key drivers of heating oil futures prices.
What Are NY Harbor ULSD Heating Oil Futures?
There are two types of energy futures contracts listed for trade on the CME: commodity and refined. Featuring WTI crude oil (CL) and Henry Hub natural gas (NG), commodity futures are the more popular of the two. However, New York Harbor Ultra-Low Sulfur Diesel (NY Harbor ULSD, HO) and Reformulated Blendstock for Oxygenate Blending gasoline (RBOB, RB) are refined contracts vital to global commerce.
Technically listed on the NYMEX, a division of the CME Group, NY Harbor ULSD heating oil is a multipurpose refined diesel fuel. Primary uses for NY Harbor ULSD are as fuel for transportation and home heating.
Since 2010, NY Harbor ULSD has been the standard for U.S. highway diesel fuel. Also, it’s easily adaptable to home heating. The “NY Harbor” aspect of the product’s description refers to physical distribution centers located in New York Harbor. The location of these hubs makes New York a key locale in the ULSD cash market.
To capitalize on heating oil futures prices, understanding the following specs for CME NY Harbor ULSD is a must:
U.S. dollars and cents
$0.0001 per gallon
$4.20 per tick
In addition to these specs, it’s worth noting that HO daily volumes regularly exceeded 170,000 traded contracts per month in 2019. The steady volumes are attributable to the HO contract being engaged by traders in 94 different countries.
Seasonal Trends in NY Harbor ULSD Heating Oil Futures Prices
Perhaps the single greatest underpinning of commodities and commodity-based asset prices is the relationship between supply and demand. Although the supply-demand dichotomy can be extremely complex, it boils down to this: When demand increases, prices rise; when supplies increase, prices fall. NY Harbor ULSD heating oil futures prices are no different ― when consumption spikes, so does the price.
Traditionally, the seasonality of HO runs contrary to that of other energies, such as WTI crude oil and RBOB gasoline. According to the U.S. Energy Information Agency (EIA), heating oil futures prices trend upward from October through March. The reason for this is simple ― increased demand. In fact, the EIA estimates that a homeowner in the Northeast burns between 850 gallons to 1,200 gallons of heating oil in a typical winter, while burning little to none the remainder of the year. Given the uptick in demand, HO prices cycle up in the fall and winter before falling in the spring and summer.
In addition to seasonality, heating oil futures prices hinge on these two broad market drivers:
Crude oil prices: Heating oil is a crude oil derivative. Thus, when the prices of crude oil rise, heating oil follows suit.
USD strength: The relative strength of the U.S. dollar (USD) impacts commodity-based products across the board. When the USD strengthens, both crude oil and heating oil futures prices tend to retreat.
Are You Ready to Trade Your ESG Values?
As the financial markets evolve, the importance of environmental, societal, and governmental (ESG) sustainable investing continues to grow. To learn more about how you can profit from strategies complementary to your ESG values, sign up for our free webinar, The Future of Sustainable Investing. Featuring keynote speakers Paul Woolman (Senior Director, CME Group Equities Products and Alternative Investments) and Reid Steadman (Managing Director, S&P Dow Jones Indices Global Head of ESG), The Future of Sustainable Investing is a great place to begin pursuit of your financial and ESG objectives.
Month: August 2021
(as of Oct 21,2021 19:01:32 UTC – Details)
Investing is the best thing teenagers can do to build long-term wealth and become financially free because each dollar invested as a teen will become worth exponentially more. This book, written by a fellow teen, covers everything a teen will need to know to understand and have success in the stock market, as well as provides an introduction to related topics including personal budgeting, saving money, and making money. We’ll also explore concrete, real-life examples, and learn from the world’s most successful investors. As the author, I wrote this book so investing can change other’s lives as it changed and continues to change mine. No matter who you are, no matter your age and no matter the amount of money you have, you can invest, and this book will help you do just that.
Publisher:Alan John (April 18, 2020)
Reading age:13 – 18 years
Grade level:7 – 12
Item Weight:7.1 ounces
Dimensions:6 x 0.31 x 9 inches
(as of Oct 21,2021 19:01:32 UTC – Details)
Betsey Johnson mismatched front-back earrings featuring heart-shaped faceted stone stud at front with pearl angel drop at back embellished with pave stone accents. The other pair features pearl devil stud at front with heart-shaped faceted stone drop at back. Earrings are set in rose gold and black plated metal with a post back closure.
Package Dimensions:3 x 2.8 x 0.8 inches; 0.32 Ounces
Item model number:B10745-E01
Date First Available:October 9, 2015
Manufacturer:Betsey Johnson Jewelry
Country of Origin:China
Two-tone metal with glass and plastic
Post back closure
$399.99 - $272.20
(as of Oct 21,2021 19:01:32 UTC – Details)
You need more because you do more. Meet the versatility of the HP Chromebook 12 that features a 360° hinge that adapts to keep up with your busy lifestyle. With the performance and features you want, this portable PC comes with the best of chrome and Android so you can go farther with a long battery life.
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The world of nonfungible tokens and blockchain gaming has seen immense growth and progress towards mainstream adoption in 2021. Recently, the movement picked up steam as an array of celebrities and internet influencers jumped on the hype train by purchasing premium digital collectibles.
One project that has quickly risen in value over the past two months as details about its ongoing development trickle to the public is Illuvium (ILV), an open-world fantasy battle game built on the Ethereum (ETH) blockchain.
Data from CoinGecko shows that after hitting a low of $29.32 on June 22, the price of ILV skyrocketed 1,765% to post a new all-time high at $545.26 on Aug. 13.
Three reasons for the tremendous price growth seen in ILV include the introduction of multi-asset staking features on the ILV protocol, the steady release of teaser clips and NFTs that provide a glimpse into how the gameplay will look and the general strength of the NFT sector which has been gaining momentum since July.
Multi-asset staking opportunities increase token demand
Decentralized finance and its ability to offer users and token holders a yield on their investment has been one most successful trends in the crypto sector.
In an effort to capture some of this momentum, as well as improve the tokenenomics of the ILV token, the team at Illuvum introduced staking capabilities for ILV on June 30, and later they expanded its capabilities to include other popular projects like Axie Infinity (AXS) and Synthetix (SNX).
Get ready, all AXS holders. We’re opening up the Axie Flash Pool on Weds July 28th, at 7am AEST. You can stake now, but rewards don’t start until the pool opens.
To get started, go to https://t.co/iXq8uR8CmH
We hope that the Axie Pool will be exciting and beneficial for you!
— Illuvium (@illuviumio) July 27, 2021
At the time of writing, the flash pools for staking AXS and SNX are sold out but ILV token holders can earn a 39.77% yield from flexible staking that can be withdrawn at any time, or 79.53% for those willing to lock their tokens on the protocol for 52 weeks.
Users who provide liquidity for the project on SushiSwap can earn a yield that ranges from 283% to 566% depending on the amount of time locked.
Product teasers excite the community
A second reason for the increased attention and excitement Illuvium has received over the past month has been the steady release of new project details and character graphics that have given community members an idea of what the gameplay will look like.
Updated UI for wild encounters! pic.twitter.com/kvgZxOLva3
— Illuvium (@illuviumio) August 26, 2021
This strategy of specialized NFTs for influencers helped drive up interest in the project as the influencers promoted Illuvium to their communities and gave them an opportunity to win one of the custom NFTs.
NFT and blockchain gaming sector strength
A third reason for the growth seen in Illuvium has been the overall growth in the wider NFT and blockchain-based gaming sectors, which have been the best performers over the past two month
Some of the breakout stars of the summer include Axie Infinity, a blockchain-based trading and battling game where some players earn enough money to pay their monthly living expenses, and Audius, a decentralized music-sharing and streaming protocol that enables direct transactions between listeners and creators by converting songs into NFTs.
Evidence of the skyrocketing demand for NFTs can be found in the daily trading volume on OpenSea, the most popular marketplace for NFTs, which saw a record $3 billion in sales volume during the month of August.
— OpenSea (@opensea) August 31, 2021
To add a little perspective, as of Aug. 2 the total year-to-date accumulated volume on OpenSea was $1.02 billion, meaning that the volume seen during the month of August was nearly three times higher than the total volume traded between January 1 and August 2 of 2021.
A word of caution is warranted at these times, however, because the NFT sector has been known to reverse direction at the drop of a hat and send token values plunging as traders race for the exits.
Recent examples of this include Alien Worlds (TLM) and MyNeighborAlice (ALICE), which both experienced significant price increases ahead of their full product launches, only to have their values collapse by more than 90% once released.
If the Illuvium protocol can avoid these pitfalls and make good on its promise to become the first AAA-rated game on the Ethereum blockchain, ILV has the potential to see further price appreciation as the blockchain-gaming industry goes mainstream.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
EQUITY MARKET OUTLOOK:
- S&P 500 rises 2.9% in August, gaining ground for the seventh consecutive month
- While strong earnings growth may be a positive catalyst for stocks over the medium term, there are near-term risks on the horizon
- The prospect of a tax hike and monetary tightening may cause a temporary pullback in risk assets in September
Most read: S&P 500 Technical & Sector Outlook, XLRE & XLE in Focus
After setting an all-time high on Monday, the S&5 500 retreated slightly on Tuesday on profit-taking and some defensive sentiment. Despite the small pullback, the benchmark index for large U.S. corporations closed August up 2.9%, rising for the seventh consecutive month and posting its best winning streak since 2017.
Gains were undoubtedly supported by solid earnings growth and bullish corporate guidance following strong second quarter performance. As a reminder, of all the S&P 500 companies that have reported results so far, ~90% have beaten EPS expectations by an average of 19%, a figure significantly above the five-year mean of 7.8%.
With corporate profits growing at a good pace and a rosy earnings outlook as the economic recovery takes hold and companies adapt to the changing business conditions brought on by the pandemic, there is scope for stocks to rise further over the medium term on the back of valuation support and very low interest rates.
However, on a shorter-term horizon, there may be some headwinds, especially since we have not seen a 5% drawdown in 10 months, a very unusual and perhaps unhealthy occurrence in equity markets. That said, there are two key risks looming for the S&P 500 heading into September:
- The prospect of higher taxes
- Monetary tightening by the Federal Reserve
When Congress returns from summer recess in the coming weeks, Democrats will begin negotiations to craft their “$3.5 trillion human infrastructure package”.The legislation, which could pass through reconciliation without a single Republican vote, will likely roll back some of the previous administration’s tax cuts. As investors wake up to the possibility of a corporate tax increase, whether retroactive or just retrospective, market sentiment could sour in the blink of an eye, triggering a large but temporary sell-off in risk assets.
After the Jackson Hole Symposium, it became clear the Fed is inclined to wait a bit longer before beginning to reduce asset purchases. Although no taper announcement is likely to come at the September FOMC conclave, the central bank may use the meeting to prime investors for a November decision. As traders start to price less policy accommodation (market is forward looking), US treasury yields could start their next leg higher, weighing on tech companies with exorbitant price-to-earnings ratios. This may become a drag on the tech sector and therefore, on the S&P 500 (technology companies account for roughly 30% of the S&P 500).
S&P 500 MONTHLY CHART
EDUCATION TOOLS FOR TRADERS
—Written by Diego Colman, DailyFX Market Strategist
Gold futures climbed on Tuesday following some downbeat U.S. economic data, with prices notching a slight gain for the month. Looking ahead, the focus will be on Friday’s U.S. jobs data, wrote Peter Grant in Zaner’s latest Grant on Gold newsletter. If the data come in significantly above market expectations, “talk of tapering and [interest] rate lift-off will heat up once again,” he said. That could pressure gold prices. December gold
rose $5.90, or 0.3%, to settle at $1,818.10 an ounce after ending Monday down 0.4%. For the month, prices for the most-active contract were up from the $1.817.20 settlement at the end of July, FactSet data show.
(as of Oct 21,2021 19:01:32 UTC – Details)
Is Discontinued By Manufacturer:No
Product Dimensions:10 x 8 x 2 inches; 10 Ounces
Date First Available:January 17, 2018
Manufacturer:Rogue River Tactical
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