Slide 17 of 30
- Since starting with heating oil futures in 1978, energy futures and options markets on the New York Mercantile Exchange have grown and profoundly changed energy marketing.
- Crude oil is usually not sold at a fixed price when purchased. It is often sold at a reference price using a futures price at delivery.
- Gasoline futures prices are watched closely by distributors.
- Heating oil distributors make widespread use of future contracts.
- Natural gas futures started in April 1990 and grew rapidly.
- Electricity futures and options started in 1996 -- their possible effects on markets during deregulation are not yet known.
Source: New York Mercantile Exchange.
