Heating Oil Hits 5-week Low

Heating oil futures for delivery in New York Harbor fell toward $3.60 per gallon, hitting a five-week low, as traders looked for clearer signals from complex US–Iran negotiations that could lead to a gradual normalization of energy exports from the Middle East. Both sides had recently indicated progress in talks toward reopening the Strait of Hormuz, but renewed hostilities have cast doubt on the viability of a concrete agreement. Exports of distillate products from the region have been largely disrupted since the war began in March, straining refinery operations and pushing heating oil futures to a record $4.60 per gallon that month. Meanwhile, US distillate inventories unexpectedly rose in mid-May, contrasting with a decline in gasoline stocks, suggesting refiners shifted focus toward diesel and jet fuel production amid global shortages of transportation fuels.

Heating Oil decreased to 3.62 USD/Gal, the lowest since April 2026. Over the past 4 weeks, Heating Oil lost 7.05%, and in the last 12 months, it increased 73.29%.

Heating oil futures for delivery in New York Harbor fell below $3.70 per gallon, hitting a two-week low, as markets assessed the likelihood of the US and Iran reaching a deal. The US military reportedly carried out a self-defense strike in Iran, highlighting the fragility of diplomatic efforts, after President Donald Trump said talks with Tehran were progressing, with discussions including an interim US lifting of its blockade and Iran reopening the Strait of Hormuz. Exports of distillate products from the region have been largely halted since the war began in March, straining refinery operations and pushing heating oil futures to a record high of $4.60 per gallon that month. Meanwhile, US distillate inventories unexpectedly rose in mid-May, contrasting with a decline in gasoline stocks, suggesting refiners prioritized diesel and jet fuel production amid global transportation fuel shortages.