Gas oil is a product of crude oil and is used for heating purposes and for generating power. Therefore, it is also called heating oil in the US. Gas oil accounts for about 25% of the yield from a barrel of crude oil. This represents the second largest “cut” after petrol. Gas oil is traded widely in Europe as a hedging tool for the physical industry. The underlying physical asset for gas oil futures contracts is gas oil barges delivered in ARA (Antwerp, Rotterdam and Amsterdam). Gas oil futures contracts are used as the pricing reference for all distillate trading across Europe and other countries.
Gas oil prices typically move in sync with that of crude oil.
Read more about oil trading.