heating oil

A product of crude oil that is used to heat homes and businesses, particularly in the northeast United States. Heating oil, also known as No. 2 fuel oil, accounts for about 25 percent of the yield of a barrel of crude oil, second only to gasoline. Heating oil futures and options are traded on the New York Mercantile Exchange and are based on delivery to New York harbor. Trading also occurs on other exchanges throughout the world.