Heating Oil Trades Near 3-Month Low

US heating oil prices hovered around $3.20 per gallon, trading near their lowest level since March amid growing fears of a potential global oil surplus. OPEC+ approved another 188,000-barrel-per-day increase in production quotas for next month, following similar hikes in June and July. Although much of the additional output has yet to reach the market, the decision signals the group's intention to continue unwinding earlier production cuts as regional stability improves. This came at a time when oil and gas shipments through the US-secured corridor in the Strait of Hormuz continued to recover, enabling major Persian Gulf producers to boost exports. Saudi Arabia's exports approached pre-war levels as tanker traffic resumed, while the United Arab Emirates also restored its export flows. Elsewhere, UK diesel prices posted a record monthly decline in June, further signaling easing pressure across distillate fuel markets.

US heating oil prices hovered around $3.19 per gallon, consolidating near their lowest levels since the Iran war after retracing much of their conflict-driven surge over the previous three months. Oil shipments through the Strait of Hormuz continued to recover, with crude flows exceeding 10 million barrels per day under US military protection, according to a US official. The UAE also restored oil exports to pre-war levels through alternative routes, while Iran's crude exports surpassed 40 million barrels after the US lifted its naval blockade. At the same time, President Donald Trump praised progress in negotiations following a round of indirect talks. On the data front, distillate stockpiles, which include diesel and heating oil, rose by 2.483 million barrels in the last week of June, compared with expectations for a 0.7 million-barrel decline. Elsewhere, UK diesel prices posted a record monthly decline in June, further signaling easing pressure across distillate fuel markets.

US heating oil prices traded around $3.20 per gallon, as markets focused on prospects for US-Iran peace talks, though inconsistent rhetoric from both sides kept uncertainty elevated. Iran’s Deputy Foreign Minister Kazem Gharibabadi also said Tehran would proceed with plans to jointly manage traffic in the Strait of Hormuz “if for any reason Oman is not interested in doing so,” underscoring ongoing disagreements over the key shipping route. Traffic through the strategic waterway eased over the weekend after renewed clashes damaged two vessels, although tanker operators and crews have remained willing to continue transiting the route. Meanwhile, SPR stocks fell by 5.5 million barrels to 325.7 million, the lowest since May 1983, amid ongoing releases to offset post–Iran war supply gaps. For the month, heating oil is heading for a 13% loss and a roughly 20% decline for Q2.