CME to keep heating oil contract

Market: Crude oil, Fundamentals, Oil products
23/03/12

Houston, 23 March (Argus) — Exchange operator CME Group has changed course and will keep its New York Harbor No. 2 heating oil contract, rather than delisting the distillate hedging tool as regional sulfur specifications change.

CME, which runs the Nymex, had planned to discontinue offering the contract after April 2013, and replace it with a New York Harbor ultra-low sulfur diesel (ULSD) contract. But the ULSD product has “had no traction to date,” CME managing director for energy Gary Morsches said.

Now CME plans to extend the existing heating oil contract out to 2015 and lower its sulfur content specification to 15ppm, down from the current 2,000ppm.

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