Heating Oil is down by 5.03%

US heating oil futures fell to about $2.34 per gallon, pulling back from a ten-week high of $2.65 reached on January 27, as milder weather forecasts eased near-term demand concerns. Forecasts show warmer than normal temperatures across large parts of the US through mid month, which is likely to reduce heating needs despite ongoing cold in parts of the southern states. Inventory data also weighed on prices, with distillate stockpiles rising by 329 thousand barrels in the week ended Jan 23, against expectations for a draw, while heating oil inventories posted a second consecutive weekly build. Still, prices remain well above early January levels, having been supported by earlier cold driven demand, refinery disruptions, and fuel switching as high natural gas prices pushed some power generators to use fuel oil instead.

Heating Oil decreased 5.03% to 2.4057 USD/Gal

US heating oil futures extended losses to near $2.50 per gallon, deepening the pullback from its 10-week high of $2.67 seen January 28th as markets further unwound the weather driven rally and reassessed supply conditions. Prices initially surged more than 12% over four sessions on expectations of sustained US cold, but forecasts have increasingly pointed to peak winter demand having passed, with milder temperatures spreading across northern regions after early February. At the same time, inventory data continued to challenge the bullish narrative, as distillate stockpiles, including diesel and heating oil, rose by 329 thousand barrels against expectations for a 0.55 million barrel draw, while heating oil inventories posted a second consecutive weekly build. Even so, prices remain well above early January levels, having been underpinned by prior cold-driven demand, refinery outages, and fuel switching as elevated natural gas prices boosted fuel oil use for power generation.