Heating Oil Tumbles After EIA
2026-02-25 15:54
By
Felipe Alarcon
1 min. read
US heating oil futures tumbled below $2.6 per gallon on Wednesday, accelerating their retreat from recent three-month highs seen February 24th as massive inventory builds outweighed geopolitical risk premiums.
The latest EIA data revealed a staggering 15.99 million barrel surge in US crude oil stocks for the week ending February 20th, the largest build in three years.
Simultaneously, distillate inventories shifted from a sharp draw to a 252 thousand barrel increase.
Combined with forecasts for above average temperatures across the Western US, the outlook for heating demand remains weak as the winter season nears its end.
While tensions persist following President Trump’s accusations regarding Iran’s nuclear program, the sheer volume of domestic stockpiles has provided a significant buffer against potential supply disruptions in the Strait of Hormuz.