Heating Oil Eases

2026-02-12 14:30 By Felipe Alarcon 1 min. read

US heating oil futures slipped toward $2.38 per gallon after failing to sustain gains, as easing crude feedstock costs and softer near-term demand outweighed an otherwise tight distillate balance.

Although recent EIA data showed a sizable 5.6 million barrel draw in distillate inventories, underscoring that stocks remain relatively constrained for this stage of the season, falling crude prices have reduced refiners’ input costs and removed a key source of price support.

Elevated refinery runs continue to maintain steady product flows, limiting fears of acute supply shortages.

On the demand side, milder temperature forecasts across major US heating regions are curbing expected heating consumption, while weaker natural gas prices and increased drilling activity are encouraging substitution away from fuel oil.

Additional pressure stems from reports of a large crude stock build and broader signals from OPEC and the IEA that global supply could outpace demand later this year.



News Stream
Heating Oil Eases
US heating oil futures slipped toward $2.38 per gallon after failing to sustain gains, as easing crude feedstock costs and softer near-term demand outweighed an otherwise tight distillate balance. Although recent EIA data showed a sizable 5.6 million barrel draw in distillate inventories, underscoring that stocks remain relatively constrained for this stage of the season, falling crude prices have reduced refiners’ input costs and removed a key source of price support. Elevated refinery runs continue to maintain steady product flows, limiting fears of acute supply shortages. On the demand side, milder temperature forecasts across major US heating regions are curbing expected heating consumption, while weaker natural gas prices and increased drilling activity are encouraging substitution away from fuel oil. Additional pressure stems from reports of a large crude stock build and broader signals from OPEC and the IEA that global supply could outpace demand later this year.
2026-02-12
Heating Oil Rises After EIA
US heating oil futures rose toward $2.44 per gallon after a volatile stretch as a tight distillate balance and rising crude feedstock costs offset weakening near term demand from milder weather and cheaper natural gas. The latest EIA data showed a roughly 5.6 million barrel draw in distillate stocks, reinforcing that available supplies remain relatively constrained for this stage of the season. At the same time, crude oil feedstock costs climbed amid renewed US-Iran tensions. Elevated refinery runs have kept product flows steady, yet the market remains sensitive to inventory shifts. On the demand side, milder temperature forecasts across key US heating regions are trimming expected heating burn, while weaker natural gas prices and rising drilling activity, are encouraging substitution away from fuel oil. In addition, reports of a sharp crude stock build and signals from OPEC and the IEA that global supply could outpace demand later this year have limited upside.
2026-02-11
Heating Oil Eases
US heating oil futures drifted toward $2.38 per gallon after a volatile week, with milder temperature forecasts across key US heating regions trimming demand expectations. Reduced heating burn has offset what remains a seasonally tight supply backdrop, even after EIA data showed a sharp draw of roughly 5.6m barrels in distillate inventories alongside a 3.5m-barrel decline in crude stocks. Elevated refinery runs have eased supply concerns, as refiners sustained strong output of heating oil and diesel and kept product flows into export markets steady. At the same time, lower crude feedstock costs capped upside, with oil benchmarks mixed as US–Iran talks in Oman alternately eased and revived geopolitical risk premia. Adding to demand pressure, cheaper natural gas has become a more competitive heating substitute, while rising US gas drilling activity, particularly in the Haynesville, signalled higher future supply and reinforced a broader headwind for heating fuels.
2026-02-09