US Heating Oil Futures Rise to 3-Week High

2025-10-23 08:28 By Agna Gabriel 1 min. read

US heating oil futures held above $2.38 per gallon, near their highest in three weeks, supported by stronger demand and a rebound in crude prices.

The rally followed new US sanctions on Russia’s top oil producers, Rosneft PJSC and Lukoil PJSC, as President Donald Trump intensified pressure on Vladimir Putin to end the war in Ukraine.

The sanctions, citing Moscow’s lack of progress toward peace, tightened global supply expectations.

Meanwhile, weather forecasts have shifted from mild to seasonally normal for late October and early November, signaling rising heating demand.

The EIA’s latest outlook showed US distillate inventories will stay below average through 2026, pressured by strong exports, refinery closures, and significant stock draws earlier this year.

Inventories fell by 17%, or about 22 million barrels, in the first half of 2025.

Demand for distillate fuel oil rose 5% as renewable diesel and biodiesel output slumped 35% year-on-year.



News Stream
Heating Oil Falls to 3-Month Low
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Heating Oil Holds Near 3-Month Low
US heating oil prices fell toward $3.10 per gallon, trading at their lowest level since early March, as the US-Iran deal is expected to reopen the Strait of Hormuz and facilitate the return of Middle Eastern energy exports. Under the interim pact, which is scheduled to be signed later this week, Tehran would receive broad financial incentives, including the immediate right to sell its oil. Still, markets are assessing the durability of the agreement and the timeline for shipping through the Strait to normalize, as many operators may wait several weeks before resuming tanker transits. Producers have also cautioned that a full recovery could take months, citing technical and geological constraints as well as infrastructure damage. Meanwhile, government data showed that distillate stockpiles, which include diesel and heating oil, rose by 0.951 million barrels in mid-June, compared with expectations for a 0.5 million-barrel decline.
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Heating Oil Hits 3-Month Low
US heating oil prices dropped to about $3.20 per gallon, the lowest level since early March, after the US and Iran reached a deal to end the war, paving the way for a gradual resumption of energy exports from the Middle East. President Donald Trump said the deal was “now complete,” adding that the Strait of Hormuz would reopen without transit fees and sanctions-related restrictions on Iran would be lifted once the agreement is signed on June 19. Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed the agreement, though he said the text would remain confidential until the official signing ceremony. While this eases concerns for Gulf producers, the path to restoring flows still has hurdles, including mine clearance and how strictly Iran will regulate maritime passage. Producers cautioned that a complete recovery could take months, citing technical and geological constraints and infrastructure damage.
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