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NY Harbor ULSD
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NY Harbor ULSD

New York Harbor Ultra Low Sulphur Diesel futures on NYMEX; the primary US-listed distillate benchmark and the main cross-basin reference for the EBOB-RBOB and ARA arb.

NY Harbor ULSD, the CME's benchmark diesel futures contract also known as NY Harbor Heating Oil, held a managed-money net long of 9,507 contracts in the week to 9 June 2026, monetising a distillate-deficit thesis tied to Amsterdam-Rotterdam-Antwerp stocks at a 2.5-year low.

Last refreshed: 31 July 2026 · Appears in 1 active topic

Key Question

Why are US diesel futures the key to Europe's gasoil supply crunch?

Timeline for NY Harbor ULSD

#8 12 Jun

Turned net long +9,507 contracts, monetising the distillate-deficit thesis

European Oil Markets: Longs rebuilt into an 8-week low
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Background

NY Harbor ULSD is the CME Group's NYMEX ultra-low-sulphur diesel futures contract, known as the HO contract, and the United States benchmark for the transatlantic distillate arbitrage. It settles against physical diesel of 15ppm sulphur maximum delivered to New York Harbor. This entity now also covers the contract under the aliases NY Harbor Heating Oil and No. 2 heating oil, after a duplicate entity created under the former name was merged into this one.

The contract is structurally linked to ICE Low Sulphur Gasoil, its European equivalent settling against Amsterdam-Rotterdam-Antwerp inventories, by the TC2 tanker route: when ARA stocks tighten relative to US stocks, clean product tankers are chartered east and the HO-LSG arb narrows or inverts. In the week to 9 June 2026 managed money held a net long of 9,507 contracts, monetising the view that ARA gasoil stocks at a 2.5-year low were structural rather than seasonal.

ULSD also serves as a domestic heating-oil proxy in the northeastern United States, so the fourth-quarter winter demand season typically widens the crack. For traders following the European distillate balance, ULSD's positioning is a live read on professional conviction in that deficit thesis, exposed to a rapid unwind if ARA stocks recover faster than the curve implies.

Common Questions
What is NY Harbor ULSD and why does it matter for European diesel prices?
NY Harbor ULSD (CME HO contract) is the US benchmark for ultra-low-sulphur diesel. It is linked to European ARA gasoil by the transatlantic arb: when European stocks are low, US cargoes flow east, tightening the US price and the crack spread.Source: CFTC / CME Group
How does the transatlantic diesel arb between the US and Europe work?
When ARA gasoil inventories fall below seasonal norms, the price differential between ICE Gasoil and NY Harbor ULSD widens enough to cover TC2 freight, pulling US clean-product tankers eastward until the spread narrows.Source: Lowdown european-oil-markets briefing
What does the ULSD managed money long position tell traders?
The CFTC's weekly COT report shows hedge funds and other managed money holding net long ULSD positions of +9,507 contracts as of 9 June 2026, signalling professional conviction in the distillate-deficit thesis. Built at the 8 June squeeze top, this length is now exposed to forced deleveraging.Source: CFTC Disaggregated COT, week to 9 June 2026
Why are ARA gasoil stocks low and how does that affect US diesel futures?
ARA gasoil inventories hit a 2.5-year low near 13.6mb in May 2026, driving European buyers to pull US ULSD cargoes across The Atlantic. This tightened the HO crack and encouraged managed money to build long positions in the ULSD contract.Source: Lowdown european-oil-markets briefing
Source Material
Disaggregated Commitments of Traders: PetroleumNY Harbor ULSD Futures — CME Group