Heating Oil Commodity

Heating oil commodity ETFs and mutual funds invest the majority of their... Heating oil commodity ETFs and mutual funds invest the majority of their assets in heating oil futures contracts. These tend to be U.S.-listed derivative contracts and the funds are passively managed. They offer exposure to investors who believe the price of heating oil will increase. Investors are attracted to heating oil as a bet on colder temperatures. When it’s colder, people and businesses tend to use more heat. As with other commodities, heating oil is not simply affected by changes in physical supply and demand. Speculators can play a big role in price movements. In addition, prices are often influenced by factors such as currency fluctuations, geopolitical tensions, and weather events impacting refinery supply. Changes in the price of crude oil also impacts the price of heating oil , as it is the key input. As a result, these are only appropriate for more aggressive investors. Last Updated: 11/26/2024 View more View less

Heating oil commodity ETFs and mutual funds invest the majority of their assets in heating oil futures contracts. These tend to be U.S.-listed derivative contracts and the funds are passively managed. They offer... Heating oil commodity ETFs and mutual funds invest the majority of their assets in heating oil futures contracts. These tend to be U.S.-listed derivative contracts and the funds are passively managed. They offer exposure to investors who believe the price of heating oil will increase. Investors are attracted to heating oil as a bet on colder temperatures. When it’s colder, people and businesses tend to use more heat. As with other commodities, heating oil is not simply affected by changes in physical supply and demand. Speculators can play a big role in price movements. In addition, prices are often influenced by factors such as currency fluctuations, geopolitical tensions, and weather events impacting refinery supply. Changes in the price of crude oil also impacts the price of heating oil , as it is the key input. As a result, these are only appropriate for more aggressive investors. Last Updated: 11/26/2024 View more View less