Heating Oil Surges to April 2024 Highs

2026-02-26 17:56 By Felipe Alarcon 1 min. read

US heating oil futures climbed back above $2.70 per gallon on Thursday, recovering from a brief dip to trade at April 2024 highs as intensified Middle East tensions and rebounding crude oil feedstock costs outweighed a record domestic inventory build.

This rally occurred as investors shrugged off the EIA's staggering 15.99 million barrel surge in US crude stocks to focus on the high-stakes third round of nuclear talks in Geneva.

While negotiators signaled some flexibility, a defiant statement from Iranian state media regarding uranium exports reignited fears of a breakdown that could threaten flows through the Strait of Hormuz.

Demand for the fuel was further bolstered by a late-season winter storm in the US Northeast, which temporarily reversed the bearish impact of unseasonably warm forecasts in the West.

Supply side pressures were reinforced by reports that OPEC+ may delay its planned April production hike if geopolitical risks persist, keeping the global balance tight.



News Stream
Heating Oil Surges to April 2024 Highs
US heating oil futures climbed back above $2.70 per gallon on Thursday, recovering from a brief dip to trade at April 2024 highs as intensified Middle East tensions and rebounding crude oil feedstock costs outweighed a record domestic inventory build. This rally occurred as investors shrugged off the EIA's staggering 15.99 million barrel surge in US crude stocks to focus on the high-stakes third round of nuclear talks in Geneva. While negotiators signaled some flexibility, a defiant statement from Iranian state media regarding uranium exports reignited fears of a breakdown that could threaten flows through the Strait of Hormuz. Demand for the fuel was further bolstered by a late-season winter storm in the US Northeast, which temporarily reversed the bearish impact of unseasonably warm forecasts in the West. Supply side pressures were reinforced by reports that OPEC+ may delay its planned April production hike if geopolitical risks persist, keeping the global balance tight.
2026-02-26
Heating Oil Tumbles After EIA
US heating oil futures eased to around $2.64 per gallon from recent three-month highs seen on February 24 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 20, 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.
2026-02-25
US Heating Oil Futures Fall from 3-Month High
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.
2026-02-25