US Heating Oil Futures Rise to Highest since Oct 2022

US heating oil prices traded around $3.10 per gallon, near the lowest since early March, as progress in US-Iran peace talks fueled expectations of easing energy shortages and weaker fuel price pressures. Markets reacted to reports that Washington and Tehran agreed on a roadmap toward a final agreement within 60 days, while the US Treasury authorized production, delivery, and sale of Iranian oil and petroleum products for two months. A potential reopening of the Strait of Hormuz could mark a major shift for global energy markets, restoring traffic through a route that normally handles about a quarter of global seaborne oil shipments. The prospect of returning supply has already pushed Brent crude below $79 per barrel, its lowest level since early March. US refiners are also adjusting operations after months of disruption, producing record levels of jet fuel while reducing gasoline output to capture stronger margins.

US heating oil prices fell toward $3.10 per gallon in June, not far from the three-month low reached on June 18, as markets tracked a fast-changing US–Iran peace talk narrative. Both parties agreed on a 60-day roadmap toward a final deal, with technical talks set to continue through the rest of the week, according to a statement from mediators Qatar and Pakistan in Switzerland. Still, doubts over the viability of the agreement persisted after local media earlier reported that Iran suspended talks following President Donald Trump’s renewed threats of strikes should Hezbollah continue attacking Israel. The evolving developments have left markets assessing how quickly oil shipping through the Strait of Hormuz could return to normal, which has been largely constrained since March. Meanwhile, US distillate inventories, which include diesel and heating oil, increased by 0.951 million barrels in mid-June.

US heating oil prices fell toward $3.10 per gallon in June, reaching their lowest level since early March on expectations of a gradual normalization of energy exports from the Middle East. The US and Iran reportedly signed an interim agreement remotely, with Pakistan’s prime minister said the deal would lead to an immediate reopening of the Strait of Hormuz and an end to the US naval blockade on Iranian ports. He added that the agreement commits both sides to permanently halt hostilities and opens a 60-day window to negotiate a final settlement on Iran’s nuclear program. However, President Trump warned that military action could resume if Tehran does not adhere to the terms of the 14-point memorandum of understanding. Following this, the IEA flagged a potential supply glut next year. Meanwhile, government data showed that distillate stockpiles, which include diesel and heating oil, rose by 0.951 million barrels in mid-June.