Heating Oil Drops After EIA
2025-11-13 18:09
By
Felipe Alarcon
1 min. read
US heating oil futures fell to about $2.45 per gallon, down from June highs, after a smaller draw in distillate inventories made the anticipated winter tightness less acute than the market had previously feared.
Distillate stockpiles declined by 0.64 million barrels in the week ending November 7th, much less than the 2.0 million barrel draw the market had penciled in according to the latest EIA report.
At the same time, the IEA warned the oil market is increasingly unbalanced and raised both demand and supply forecasts, now seeing demand up by 788,000 barrels per day this year and 770,000 next year, while supply is rising faster, by 3.1 million and 2.5 million barrels per day.
That implies surpluses of about 2.4 million barrels per day this year and 4.0 million next year.
The IEA also softened its view on peak oil demand.
Additional pressure came from higher US output forecasts and EIA data showing another inventory build, reinforcing fears of a global oil glut.