What is Low Sulphur Gasoil used for?
Who can use it? Ultra low sulphur gas oil, also known as red diesel, is extensively used to run off-road vehicles and equipment; tractors for farming and sit-on lawn mowers, horticulture machinery, forestry equipment and even backup generators.
What is ICE Gasoil?
Description. The ICE Low Sulphur Gasoil Futures Contract is designed to provide users with an effective hedging instrument and trading opportunities. The underlying physical market for Low Sulphur Gasoil is diesel barges delivered in the ARA (Amsterdam, Rotterdam, Antwerp including Flushing and Ghent) region.
What is a gasoil crack?
A crack, or crack spread, is a term used in the energy markets to represent the differences between crude oil and the prices of the wholesale petroleum products that derive from it, such as jet fuel, kerosene, home heating oil, and gasoline. Crack is one primary indicator of oil refining companies’ earnings.
What is a bullet future?
A bullet (blt) is a Vanilla option on an underlying contract that is generally composed of more than one monthly future, e.g., it is based on Summer 09 or Quarter 2. That is, it is an option based on a strip of futures.
What happens if you don’t use ultra low sulfur diesel?
Serious damage will occur without it. Sulfur in diesel fuel must be lowered to become compatible with modern pollution-control technology being installed on later model diesel engines. This equipment will reduce fine particles (soot) and pollutants in diesel exhaust by over 90%.
What is the 2 1 1 crack spread?
The other standard spreads are the 3-2-1 (3 bbl crude vs. 2 gasoline and 1 heating oil), and 2-1-1 (2 bbl crude, 1 gasoline, 1 heating oil).
What is Rbob?
RBOB stands for reformulated blendstock for oxygenate blending. Prices for RBOB gasoline futures logically have a high degree of correlation with crude oil since gasoline is distilled from crude. Thus, some of the global supply and demand factors for crude oil also apply to RBOB.
Are bullet trades real?
A bullet trade is a secondary market trade that involves the act of purchasing an in-the-money option on a security so that the option buyer can effectively capitalize on the move in the underlying security without, in some instances, waiting for the exchange mandated price change.
What is a bullet hedge?
The bullet bond strategy is a bond investing strategy in which an investor buys bonds that all mature at the same time. A bullet strategy is one of three popular approaches to constructing a portfolio of individual bonds; the other two are the ladder and barbell strategies.
Who uses gasoil?
agricultural industry
One of the main users is the agricultural industry who use gas oil. With farmers using many different machines and vehicles on a farm, these will mostly be powered by gas oil. But don’t think it’s used to fuel just tractors and combine harvesters; farmers have grain dryers and heaters that need powering too.
Where to buy low sulphur gasoil on Ice?
Low Sulphur Gasoil Futures. Description. The ICE Low Sulphur Gasoil Futures Contract is designed to provide users with an effective hedging instrument and trading opportunities. The underlying physical market for Low Sulphur Gasoil is diesel barges delivered in the ARA (Amsterdam, Rotterdam, Antwerp including Flushing and Ghent) region.
Who is in the low sulphur gasoil futures market?
Who trades Low Sulphur Gasoil futures? The highly liquid ICE oil markets continue to attract a wide range of users, from commercial participants and producers to asset managers and pension funds. Entities with exposure to the underlying physical market for the commodity which use the futures market to hedge the risks associated with such exposure.
What do you need to know about gasoil futures?
Low Sulphur Gasoil Futures 1 Description. The ICE Low Sulphur Gasoil Futures Contract is designed to provide users with an effective hedging… 2 Market Specifications. One or more lots of 100 metric tonnes of low sulphur gasoil (10ppm diesel), with delivery by… More
How big is a lot of low sulphur gasoil?
Unit of Trading. One or more lots of 100 metric tonnes of low sulphur gasoil (10ppm diesel), with delivery by volume namely 118.35 cubic metres per lot being the equivalent of 100 metric tonnes of low sulphur gasoil (10ppm diesel), at a density of 0.845 kg/litre in vacuum at 15 Celsius.
