Heating Oil Retreats From Monthly Highs
2026-02-20 17:47
By
Felipe Alarcon
1 min. read
US heating oil futures fell below $2.6 per gallon, easing from mohtly highs as the relief rally from the US Supreme Court tariff ruling triggered a sell-the-fact reaction across energy complexes.
Despite the record US military buildup in the Middle East and President Trumps 15-day ultimatum to Iran, prices dipped as traders weighed potential de-escalation against supply risks at the Strait of Hormuz.
The downward move defied a bullish EIA report that showed a massive 4.57 million barrel draw in distillate stocks and a 9 million barrel drop in crude inventories, suggesting that macro profit-taking outweighed the tightening physical balance.
While a cold snap is forecast for the US Northeast this weekend, the immediate pressure reflects a tug-of-war between geopolitical fear and shifting trade policy sentiment.
Market participants remain on edge as the February deadline for Iran approaches, keeping volatility high even as prices test lower support levels.