Ticker: HU
Exchange: NYMEX
Trading Hours: 10:05 A.M. - 2:30 P.M. (EST)
Contract Size: 42,000 U.S. gallons (1,000 barrels)
Contract Months: All Months
Price Quote: In dollars and cents per gallon: for example, $0.7527 (75.27) per gallon
Tick Size: $0.0001 (0.01) per gallon ($4.20 per contract)
Last Trading Day: Trading terminates at the close of business on the last business day of the month preceding the delivery month.
Daily Price Limit: $0.25 per gallon ($10,500 per contract) for all months

40 Yr Seasonal Chart Long-Term Chart

Fundamental Overview:

Gasoline is the largest single volume refined product sold in the United States and accounts for almost half of national oil consumption. It is a highly diverse market, with hundreds of wholesale distributors and thousands of retail outlets, often making it subject to intense competition and price volatility.

The NYMEX Division New York harbor gasoline futures contract trades in units of 42,000 gallons (1,000 barrels). It is based on delivery at petroleum products terminals in the harbor, the major East Coast trading center for imports and domestic shipments from refineries in the New York harbor area or from the Gulf Coast refining centers.

Gasoline accounts for the largest proportion of refinery output. This is why many of the recent technological advances in refinery processes have been made to increase the quantity and quality of the gasoline output. Gasoline is used almost entirely for transportation, mainly by passenger cars and trucks. In general, there are four grades of gasoline: regular and premium, each either leaded or unleaded. The two most important characteristics of gasoline are vapor pressure and octane. Vapor pressure is the surface pressure it takes to keep the liquid from turning into a gas, and it must be high enough to permit the car to start in cold weather, and low enough so that the gas does not vaporize too easily. Octane is a measure of the "engine knock" the gasoline produces: a higher octane rating means less knock.

The demand for gasoline is also seasonal. The so-called "driving" months of summer represent the peak demand season for gasoline. For this reason, stocks will be at there highest in April and May and will be at the lowest in September and October.

Key Trading Notes:

Reports - Watch the DOE Weekly Supply numbers.

Unleaded Gas will tend to move with the rest of the energy complex. Gas hits the spotlight going into the summer driving season. The summer tends to be peak demand for gasoline. Traders normally watch the weekly supply numbers from the DOE to understand the current supply and demand situation. Other factors such as the strength of the economy, OPEC, and Mideast troubles will tend to influence the price.

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