Heating Oil is down by 5.06%

Heating oil futures for delivery at the New York Harbor climbed above $3.8 per gallon, extending their rebound from a two-week low, as renewed attacks in the Middle East reinforced concerns over deeper energy disruptions in the region. The US and Iran exchanged fire in the Strait of Hormuz, with both sides accusing the other of initiating the confrontation, putting a month-long ceasefire in doubt. Oil and refined fuel shipments through the Strait have been severely disrupted since the war began in March, putting pressure on refineries and pushing heating oil futures to a record high of $4.6 in March. In response, refineries across Europe and Asia have adjusted operations to produce more diesel and jet fuel at the expense of gasoline output. Even so, fuel shortages forced major European airlines to cancel thousands of flights, while tightening supplies in Asia prompted China to resume diesel exports.

Heating Oil decreased 5.06% to 3.5942 USD/Gal

Heating oil futures for delivery at the New York Harbor fell toward $3.65 per gallon mark, hitting 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.