US Heating Oil Futures Rise to 3-Week High

Heating Oil decreased 5.04% to 3.406 USD/Gal

Heating oil futures fell to around $3.4 per gallon on Tuesday, extending losses for a second session after President Trump sought to ease concerns about the Middle East conflict’s duration. Trump said the war with Iran may be nearing its final stage, adding that US military operations are progressing faster than initially expected. He also suggested Washington may ease oil-related sanctions and deploy US Navy escorts for tankers transiting the Strait of Hormuz in an effort to prevent further increases in crude prices. This comes after G7 finance ministers said the group stands ready to release oil from strategic reserves if necessary, though no action has been taken so far. Still, uncertainty persists as investors remain skeptical about the administration’s attempts to calm energy markets, even as Trump’s latest remarks pointed to a greater willingness by the White House to move toward ending the conflict.

Heating oil futures plummeted over 6% past $3.4 per gallon on Monday as the prospect of a massive G7 strategic reserve release and optimistic signals from the White House dismantled a historic 19% morning surge. Prices initially touched levels not seen since 2022 as the closure of the Strait of Hormuz and output cuts from Saudi Arabia stoked fears of a global distillate shortage. However, the momentum reversed after President Donald Trump characterized the military campaign against Iran as nearly complete and noted that maritime traffic was beginning to resume. This shift was amplified by G7 finance ministers announcing their readiness to deploy emergency oil stockpiles to stabilize energy markets and curb inflationary pressure. While local inventories remain below historical averages, the sudden collapse in crude benchmarks and the perceived reduction in geopolitical risk have forced a rapid unwinding of the war premium that had gripped the market since early March.