Heating Oil Failed to Hold to Near 2-Year High

2026-02-27 18:26 By Felipe Alarcon 1 min. read

US heating oil futures dropped toward $2.60 per gallon on Friday, retreating from April 2024 highs as a record domestic inventory build finally overwhelmed geopolitical risk premiums.

This decline accelerated after the EIA reported a staggering 15.99 million barrel surge in US crude stocks, the largest build in three years.

While intensified Middle East tensions and a late season winter storm in the Northeast initially supported prices, the sheer volume of oversupply eventually broke the market floor.

Even with ongoing nuclear talks in Geneva and a resilient 4% rise in four week fuel demand, the weight of massive stockpiles forced prices lower.

Investors are now shifting focus to the upcoming OPEC+ meeting, where a failure to delay production hikes could push futures even further into the red.

Despite the volatility, the market currently favors the bearish supply data over the threats to global flows through the Strait of Hormuz.



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