Oil futures: price security for users or speculation

Journal Article · Mon Nov 20 04:00:00 EST 1978 · Energy User News; (United States)

OSTI ID:6410122

Edwards, P L

Trading on petroleum products futures with delivery at the Port of New York has been introduced and could provide medium-to-large users with a way to maintain price stability and have a hedge against loss of oil inventory value. The futures market will include No. 2 heating oil and No. 6 industrial fuel in 1,000-barrel lots and with a maximum of 0.2 and 0.3 percent sulfur content. While futures trading is speculative, information is available to potential traders to lessen risks and hesitant companies are urged by the New York Mercantile Exchange (NYME) to begin with single contracts. Utilities could engage in speculation, but they would risk public or regulatory disapproval if money is lost. (DCK)

• Research Organization: New York
• OSTI ID: 6410122
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 3:47; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
CHARGES
ECONOMIC ELASTICITY
ECONOMICS
ELECTRIC UTILITIES
FINANCIAL INCENTIVES
FUEL OILS
FUELS
IMPORTS
INDUSTRY
INVESTMENT
MARKET
OILS
ORGANIC COMPOUNDS
OTHER ORGANIC COMPOUNDS
PETROLEUM PRODUCTS
PUBLIC OPINION
PUBLIC UTILITIES
RISK ASSESSMENT
SECURITY