Heating Oil Eases from 6-Week High

Heating oil futures for delivery at the New York Harbor eased to $4.05 per gallon from the six-week high of $4.16, as some respite in stock levels momentarily weighed against tight supply across the globe. Data from the EIA showed that stocks of distillate fuel in the US inched higher by 200 thousand barrels in the first week of May, contrasting with bets of a 2.8 million draw. The data also contrasted with a 4.1 million barrel draw for gasoline, indicating that refineries opted to concentrate capacity in diesel and jet fuel due to the shortages in global transportation hubs. Still, supply remained tight as the escalatory remarks between the US and Iran prolonged expectations of the suspension in energy exports from the Middle East. The export of distilled products from the region t 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.

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.