Heating Oil Drops to 6-Week Low After EIA

2025-12-03 16:29 By Felipe Alarcon 1 min. read

US heating oil futures fell below $2.3 a gallon to six week lows as fresh stock builds in the distillate complex suggested the winter shortfall will be much smaller than feared and offset upward pressure from higher crude feedstock costs.

The latest EIA report showed distillate inventories rose 2.06 million barrels in the week to November 28th, well above forecasts of a 0.7 million barrel build and following a 1.15 million barrel increase the prior week, the third consecutive weekly build.

Those inventory flows undermined the case for a severe seasonal deficit, yet rising crude costs limited heating oil’s slide as strikes on Russian tankers and refineries and the continuing absence of any settlement over the Russia Ukraine crisis kept a non-trivial supply risk premium intact.

At the same time mounting geopolitical tensions involving Venezuela maintained upside risk to seaborne crude and fuel flows.



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