Here in the NE, the heating season is starting…and I was shocked that my contracted delivery service now wants $2.10/gallon-that is more than gasoline!
I know that suppliesof crude oil are tight…but how can No.2 distillate jump almost $0.40 in a few weeks?
Anyway, I am reluctant to sign a contract at this price level…I think prices will drop as more refineries shift over from gasoline to heating oil.
How much oil would I have tobuy on the Chicago Mercantile Exchnage, to hedge a price for myself?