Heating Oil Sinks to 2-Week Low

2026-05-06 10:35 By Andre Joaquim 1 min. read

Heating oil futures for deliver at the New York Harbor sank to the $3.7 per gallon mark on Wednesday, their lowest in two weeks, as signs of a potential agreement between Iran and the US supported the normalization of energy exports from the Middle East.

Reports indicated that the US was close to agreeing on a memorandum by Iran to end their war, expected to start the process of clearing the passage for tankers to leave the Persian Gulf.

The export of oil and distilled products through the Strait has been all but halted since the start of the war in March, stressing refineries and driving the price of heating oil futures to a record high of $4.6 in March.

Consequently, European and Asian refineries have been forced to balance their capacity for gasoline with higher shares of diesel and jet fuel production.

Still, major European airlines already cancelled thousands of flight due to shortages of distilled fuels, and shortages in Asia drove China to resume exporting diesel.



News Stream
Heating Oil Sinks to 2-Week Low
Heating oil futures for deliver at the New York Harbor sank to the $3.7 per gallon mark on Wednesday, their lowest in two weeks, as signs of a potential agreement between Iran and the US supported the normalization of energy exports from the Middle East. Reports indicated that the US was close to agreeing on a memorandum by Iran to end their war, expected to start the process of clearing the passage for tankers to leave the Persian Gulf. The export of oil and distilled products through the Strait has been all but halted since the start of the war in March, stressing refineries and driving the price of heating oil futures to a record high of $4.6 in March. Consequently, European and Asian refineries have been forced to balance their capacity for gasoline with higher shares of diesel and jet fuel production. Still, major European airlines already cancelled thousands of flight due to shortages of distilled fuels, and shortages in Asia drove China to resume exporting diesel.
2026-05-06
Heating Oil Futures Fall Further
US heating oil futures extended their decline, dropping below $3.80 per gallon, after indications of a potential US-Iran peace agreement. President Donald Trump stated that operations to escort stranded ships out of the Strait of Hormuz would be temporarily paused to allow time to finalize a deal with Iran, but added that the blockade of Iranian ports would remain in place. His comments followed Secretary of State Marco Rubio’s assurance that the Middle East ceasefire is still holding and that the initial major US military operation against Iran has ended. Iran also denied carrying out attacks against the UAE, but warned of a “decisive response” if Abu Dhabi launches strikes on its territory. Meanwhile, weather forecasts have shifted slightly warmer as the market enters the summer cooling season, though parts of the Midwest are still expected to experience below-normal temperatures in the near term.
2026-05-06
Heating Oil Futures Hover at $4
US heating oil futures held near $4.0 per gallon as Washington played down the risk of a renewed full-scale conflict with Iran following recent clashes in the Strait of Hormuz and missile strikes on the United Arab Emirates. US officials said the incidents did not breach the ceasefire that has been in place for nearly a month, helping to stabilize market sentiment despite ongoing tensions. The standoff between the US and Iran persists, with limited progress toward fresh negotiations as Tehran demands the lifting of a naval blockade while Washington maintains pressure on Iran’s oil exports. At the same time, weather forecasts have shifted slightly warmer as the market transitions toward the summer cooling season, though below-average temperatures are still expected across parts of the Midwest in the near term.
2026-05-05