Heating Oil is down by 5.08%

US heating oil futures traded around $3.50 per gallon, hovering near their lowest level in more than five weeks, on expectations of easing supply constraints after reports indicated that Iran and the US had agreed to a truce. The two sides reportedly reached a 60-day memorandum that would extend the existing ceasefire and support the resumption of crude oil and refined product exports through the Strait of Hormuz within a month. Distillate product exports from the region have been heavily disrupted since the conflict erupted in March, putting pressure on refinery operations and driving heating oil futures to a record high of $4.60 per gallon that month. Reflecting tight supply conditions, US distillate inventories, including diesel and heating oil, fell by 2.107 million barrels in the week ending May 22, a larger-than-expected draw compared with forecasts of a 1 million barrel decline. For the month, heating oil futures were headed for an about 13% decline.

Heating Oil decreased 5.08% to 3.5258 USD/Gal

Heating oil futures for delivery in New York Harbor held around $3.60 per gallon, near 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.