US Heating Oil Futures Rise to Highest since Oct 2022

Heating oil futures climbed past $3.61 per gallon as an intensifying Middle East conflict and President Trump's demand for unconditional Iranian surrender triggered the sharpest supply risk since 2022. WTI crude oil surged over 14% to exceed $92 per barrel after Qatar warned that Gulf energy exporters could shutter production if tankers remain blocked from the Strait of Hormuz. While the US administration explores strategies like tapping strategic petroleum reserves and allowing temporary waivers for Russian crude shipments the market remains focused on the structural fragility of global energy trade. Supply concerns are amplified by Saudi Arabia redirecting shipments through Red Sea ports as Iran continues to target regional energy infrastructure. Although recent EIA data showed a modest build in distillate stocks the market is pricing in a severe supply premium that reflects the potential for a total closure of a route that handles 20 million barrels of petroleum products daily.

US heating oil futures extended gains to $3.70 per gallon, the highest since October 2022 and heading for a more than 40% weekly jump, as Middle East tensions nearly halted shipments through the Strait of Hormuz. The US-Israeli conflict with Iran showed no signs of abating and has now entered its seventh day, with Iran striking a Bahrain oil refinery with missiles and drones. Israel also hit Tehran with airstrikes, and the US suspended operations at its Kuwait embassy. Meanwhile, President Donald Trump signaled near-term plans to curb surging energy prices. Potential measures include tapping US strategic petroleum reserves, easing fuel-blending rules, and allowing the Treasury to trade oil futures. In the US, EIA data showed distillate inventories rose 0.4 million barrels, defying a projected 2.6 million-barrel draw.

US heating oil futures dropped about 4% to $3.45 per gallon, retreating from a three-year high, after President Donald Trump signaled near-term plans to curb surging energy prices. Potential measures include tapping US strategic petroleum reserves, easing fuel-blending rules, and allowing the Treasury to trade oil futures. Despite the drop, heating oil is still heading for a more than 30% weekly jump, the largest since early 2022, as Middle East tensions nearly halted shipments through the Strait of Hormuz. The US-Israeli conflict with Iran showed no signs of abating and has now entered its seventh day, with Iran striking a Bahrain oil refinery with missiles and drones. Israel also hit Tehran with airstrikes, and the US suspended operations at its Kuwait embassy. Despite a 70% decline in tanker traffic through the strait, EIA data showed distillate inventories rose 0.4 million barrels, defying a projected 2.6 million-barrel draw.