Heating Oil Rises to 3-Week High

US heating oil prices rose toward $3.40 per gallon, hitting a three-week high, after the US carried out new strikes against Iran in response to a series of attacks targeting vessels in the Strait of Hormuz. The US Treasury also withdrew a sanctions waiver that had allowed Tehran to export oil, reversing a key part of the interim peace agreement. The move fueled concerns over renewed energy market disruptions and challenged earlier expectations of a supply surplus driven by higher OPEC+ quotas and increased Middle Eastern output. Adding further support to heating oil prices were ongoing concerns over distillate supplies, as Ukrainian drone strikes continued to disrupt refinery operations in Russia. The latest attack targeted Russia’s largest oil refinery in Omsk, marking one of Ukraine’s longest-range strikes of the war and fueling speculation that Moscow could impose a diesel export ban to ease domestic shortages.

US heating oil prices rose above $3.30 per gallon, reaching a three-week high, as concerns over distillate supplies outweighed weakness in crude oil. Markets remained focused on Russia, where Ukrainian drone strikes continued to disrupt refinery operations. The latest attack targeted Russia's largest oil refinery in Omsk in one of Ukraine's longest-range strikes of the war, heightening concerns over refined fuel supplies and fueling speculation that Moscow could impose a diesel export ban to ease domestic shortages. With Russian refinery runs near multi-year lows and global distillate inventories still tight, any reduction in diesel exports was expected to keep refining margins elevated. The advance came even as benchmark crude prices remained subdued amid higher OPEC+ output and recovering oil and gas shipments through the US-secured corridor in the Strait of Hormuz, allowing major Persian Gulf producers to increase exports.

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.