Heating Oil Hovers Near 5-Week High

Heating oil futures for delivery at New York Harbor slipped to around $4.10 per gallon but held most of their recent gains near a five-week high, as the Middle East conflict continues without a clear resolution, prolonging disruptions to regional energy supply. US President Donald Trump has rejected Tehran’s latest response to a proposed peace framework, keeping the Strait of Hormuz effectively shut. Maritime transit through the key passageway has been halted since early March, disrupting nearly 20 million barrels per day of crude oil and refined product exports to major importing countries. In response, refineries across Europe and Asia have shifted output toward diesel and jet fuel at the expense of gasoline. Meanwhile, the National Weather Service forecasts a high likelihood that most of the US will experience above-normal temperatures over the next 6–10 days, potentially curbing near-term heating demand.

Heating oil futures for delivery at New York Harbor climbed above $4 per gallon, extending gains for a fourth straight session, as diminishing hopes for a quick resolution to the Middle East conflict stoked concerns over deeper energy supply disruptions in the region. President Donald Trump rejected Iran’s latest proposal to end the conflict, leaving the crucial Strait of Hormuz effectively shut. Meanwhile, Israeli Prime Minister Netanyahu cautioned that the conflict with Iran was “not over,” raising fears of further military escalation. Oil and refined fuel flows through the Strait have been heavily disrupted since March, straining refineries and pushing heating oil futures to a record $4.60. In response, refineries across Europe and Asia have shifted output toward diesel and jet fuel at the expense of gasoline. Despite this, fuel shortages have forced major European airlines to cancel thousands of flights, while tighter supplies in Asia have prompted China to resume diesel exports.

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.