Heating Oil is up by 5%

US heating oil futures rose more than 5% to above $3.81 per gallon, rebounding from a five-week low of $3.624 on April 14 after EIA data showed a larger-than-expected draw in inventories. Distillate stocks, including diesel and heating oil, fell by 3.1 million barrels to 111.6 million in the week ended April 10, beating expectations for a 2.4 million barrel decline. Looking ahead, forecasts point to mostly warmer-than-normal temperatures through April 30, which should keep both heating and cooling demand subdued. On the geopolitical front, the US has continued its naval blockade of the Strait of Hormuz, although sentiment has been supported by growing optimism over potential Middle East peace talks. Reports suggest the US and Iran are moving closer to a second round of negotiations and a possible extension of the ceasefire. President Donald Trump said talks could resume within days and described the conflict as “close to over.”

Heating Oil increased 5% to 3.8055 USD/Gal

Heating oil futures traded around $3.70 per gallon, remaining close to a five-week low, pressured by growing expectations of further diplomatic resolution in the Middle East. A White House official said discussions are underway for a second round of talks between Washington and Tehran, though no formal schedule has been set. Reports also indicated that President Trump said negotiations could resume “within the next two days” and described the talks as progressing slowly. However, uncertainty remains elevated, as the US Central Command said its blockade of Iranian ports is fully in force, effectively cutting off Iran’s maritime trade, which accounts for around 90% of its economy. Meanwhile, reflecting ongoing disruption, the IEA noted that no new energy cargoes were loaded in April and warned that global oil demand could decline this year for the first time since the COVID-era downturn.