US Heating Oil Futures Fall from 3-Month High

2026-02-25 11:35 By Agna Gabriel 1 min. read

Heating oil futures in the US fell to $2.64 per gallon, retreating from the three-month high of nearly $2.7 reached on February 24, as warmer weather forecasts reduced demand expectations.

Updated projections show above average temperatures across much of the western United States through the end of the month, lowering the need for heating as winter draws to a close and limiting the risk of a late season cold spell tightening supplies.

At the same time, geopolitical tensions remain in focus after Donald Trump said Iran is rebuilding its nuclear program, fueling speculation about possible military action.

Any escalation could threaten flows through the Strait of Hormuz, a key route for roughly a quarter of global seaborne oil and LNG shipments.



News Stream
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US heating oil futures fell below $3.60 per gallon, after erasing gains in the previous session, as Israel and Iran agreed to halt mutual attacks following a recent escalation in violence. Israeli Prime Minister Benjamin Netanyahu said Israel is pausing strikes on Iran for now but will retaliate if Tehran attacks again, while Iranian media echoed a similar stance. The development kept hopes alive for efforts to renew the ceasefire into a broader agreement in the Middle East. While a fragile truce remains in effect, the Strait of Hormuz remains constrained under a two-sided blockade by Tehran and Washington, significantly limiting exports of distillate products from the region. Meanwhile, US distillate inventories, including diesel and heating oil, rose by 1.502 million barrels in the final week of May.
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