Heating oil facts for kids
Heating oil is oil that is burned as fuel in furnaces inside of buildings. The oil is usually delivered by tanker truck to individual homes and business places, and the oil is stored in oil tanks in the basement or outside, next to the building. If oil leaks into the ground, it's an environmental problem because even a small leak can cause major groundwater pollution, making the water from wells and springs unusable because chemicals from the oil are harmful to both humans and animals. Heating oil is usually dyed to make sure it is not confused with vehicle fuel.
Heating oil, also known as No. 2 fuel oil, accounts for about 25% of the output of a barrel of crude oil, the second-biggest "cut" after gasoline.
Market info
Among processed fuels, the need for heating oil has been going down, while the usage of liquefied petroleum gas has increased.
Investors and suppliers trade contracts that promise the delivery of large amounts of heating oil before a certain date in the future, at a specific price. These futures contracts trade in units of 42,000 gallons, which is the same as 1,000 barrels. Prices are based on delivery in New York City harbor, the main cash market trading center.
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Images for kids
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Illustration on where the parts of an oil storage tank that require inspection may be located. Tank design may vary from tank to tank.
