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, 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.



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