Heating Oil Prices Rise

Heating oil futures jumped nearly 5% to $3.70 per barrel, tracking a broader rebound across energy markets amid a standoff in US–Iran negotiations. It remains unclear whether Iran will join the US for a second round of talks ahead of Wednesday’s ceasefire deadline, while the Strait of Hormuz continues to be largely shut. Since the war with Iran began at the end of February, crude and refined product supplies from the Persian Gulf have been reduced by roughly 13 million barrels per day, according to the International Energy Agency. However, major oil traders have warned that demand destruction linked to the Iran conflict is likely to deepen while warmer-than-normal temperatures through April 30 could dampen both heating and cooling demand.

US heating oil futures eased to around $3.50 per barrel on Tuesday, pausing gains from the previous session, as traders weighed signs that Iran may join talks with the US ahead of the ceasefire’s expiry. Tehran is reportedly sending a delegation to Islamabad, though its leadership remains unclear, despite earlier hesitation to resume negotiations. Still, friction remained intense as President Trump previously said extending the truce is highly unlikely and cautioned against overwhelming military force. Iran’s top negotiator also accused the US of pressuring talks, rejecting negotiations under threats, and warning of escalation. Ongoing tensions in the Middle East have kept energy markets volatile since March, particularly as the Strait of Hormuz remains closed. The standoff at this key chokepoint risks worsening the global energy crisis. Meanwhile, warmer-than-normal temperatures through April 30 may reduce both heating and cooling demand.

Heating Oil increased 5.02% to 3.5681 USD/Gal