Heating Oil Hovers Near 5-Week Low
2026-05-29 00:54
By
Kyrie Dichosa
1 min. read
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.