Heating Oil Rebounds Toward 1-Month High

2026-07-08 09:14 By Andre Joaquim 1 min. read

Heating oil futures rose to $3.4 per gallon on Wednesday, the highest in one month, as escalation in the Middle East risked new blockades on supply from the key region.

Iran launched an attack on tankers crossing the Strait of Hormuz and the US responded by launching a wave of attacks, prompting US President Trump challenge the validity of the current ceasefire and block Iranian energy sales.

Heating oil prices had dropped sharply since peaking at a record high of $4.7 after in late March, but recently rebounded to trade over 30% above levels from before the conflict.

Inventory of crude oil in the US and China remain low as both major consumers relied on reserves to make up for the low supply, limiting the upside on crude prices.

Still, the soaring crack spreads for diesel producers continued to indicate that refiners are operating at tight capacity.

Further, prices were lifted by a jump in Chinese imports of crude oil and fuel after months of low purchases during the war.



News Stream
Heating Oil Rebounds Toward 1-Month High
Heating oil futures rose to $3.4 per gallon on Wednesday, the highest in one month, as escalation in the Middle East risked new blockades on supply from the key region. Iran launched an attack on tankers crossing the Strait of Hormuz and the US responded by launching a wave of attacks, prompting US President Trump challenge the validity of the current ceasefire and block Iranian energy sales. Heating oil prices had dropped sharply since peaking at a record high of $4.7 after in late March, but recently rebounded to trade over 30% above levels from before the conflict. Inventory of crude oil in the US and China remain low as both major consumers relied on reserves to make up for the low supply, limiting the upside on crude prices. Still, the soaring crack spreads for diesel producers continued to indicate that refiners are operating at tight capacity. Further, prices were lifted by a jump in Chinese imports of crude oil and fuel after months of low purchases during the war.
2026-07-08
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.
2026-07-08
Heating Oil Hits 3-Week High
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.
2026-07-07