Commodities
Refined Products

After processing crude oil through various refinery processes, a number of closely-related products are produced. Based on the weight of each molecule, refinery output is categorized as: light distillate (gasoline, naptha, LPG), middle distillate (kerosene, diesel, heating oil) or heavy distillate (asphalt, fuel oil, and paraffin or wax). US futures markets focus primarily on Heating Oil and RBOB Gasoline, while European markets trade Gasoil (very similar to diesel).

The standard trade quantity for US markets is a multiple of 1,000 barrels (or 42,000 gallons), while the European Gasoil trades in multiples of 100 metric tons (about 746 barrels). Market liquidity is limited for contracts that are more than 18-24 months away. NYMEX RBOB and Heating Oil futures and options are either physically settled at New York Harbor or financially settled.

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