Heating Oil Surges Over 13%

Heating oil futures in the US surged over 13% to $3.75 per gallon on Wednesday, the highest in over one month, amid mounting threats to supply. Iran and the US exchanged a wave of attacks after the IRGC struck a tanker crossing the Strait of Hormuz, prompting President Trump to negate the validity of the current ceasefire after multiple tankers turned back from crossing the chokepoint. The increase in crude oil prices was exacerbated by soaring crack spreads in distillate fuel as tight refining capacity drove energy companies to hike sales prices. On top of that, major diesel producer Russia announced it would halt exports and shift to an importer, as higher crude prices exacerbated the series of Ukrainian strikes on the country's largest refineries. 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 40% above levels from before the conflict.

Heating Oil increased to 3.64 USD/Gal, the highest since June 2026. Over the past 4 weeks, Heating Oil gained 2.55%, and in the last 12 months, it increased 50.76%.

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.