Heating Oil is up by 5.02%

Heating Oil increased 5.02% to 4.3593 USD/Gal

Heating oil futures in the US rose to over $4.3 per gallon in late July, testing their highest in nearly four months as the resumption of hostilities between Iran and the US prolonged the supply halt from the region. Iran launched attacks against US forces across the Middle East and Saudi oil and refining infrastructure, prompting the US and Saudi Arabia to attack Iranian forces in Iraq. The resumption of the conflict maintained expectations that Iran and Houthi Rebels will continue to attack tankers crossing the Red Sea and Persian Gulf in the near term, cutting supply from major producers. In the meantime, Russian diesel supply was also hampered by recent Ukrainian attacks on refineries, prompting Moscow to halt exports for all of July. Still, stocks of distillate fuel in the US rose more than expected for a third week as of July 24th amid a rebound in refinery runs. Still, wholesale fuel prices as a sharp reduction in commercial and SPR magnified the backdrop of tight supply.

US heating oil prices rose to around $4.20 per gallon, moving back toward their three-month high, as the resumption of hostilities between Iran and the US revived fears of energy supply disruptions. Iran launched ballistic missiles at US forces in the Middle East, marking an escalation after a pause in fighting although the US Central Command said all missiles were intercepted. The US military also conducted strikes with Saudi forces in Iraq targeting Iran-backed militant groups in response to Iranian-directed drone attacks. In the Strait of Hormuz, Iran rejected Oman’s proposal to split control of shipping routes, insisting the inbound route and part of the outbound route remain under Tehran’s control. Outside the Middle East, Russia’s fuel crisis has started to ease as refineries resumed operations, but the diesel export ban continues to pressure an already tight diesel market. Elsewhere, industry data showed distillate stockpiles fell by 125,000 barrels in the week ending July 24.