US Heating Oil Extends Rally

2026-08-11 07:04 By Kyrie Dichosa 1 min. read

US heating oil prices extended their rally above $4.20 per gallon, moving back toward a four-month high as prospects for a deal to reopen the Strait of Hormuz dimmed.

President Donald Trump made demands on Iran, further dimming hopes for an agreement to reopen the waterway.

This followed Iran’s statement that a deal with Oman on new shipping routes was close to being finalized, while warning that reopening the waterway remained conditional on Washington meeting additional demands.

Meanwhile, an attack claimed by Iran-backed Houthi militants on Saudi Arabia’s Jazan refinery in the Red Sea compounded supply concerns.

Saudi authorities said the fire was extinguished early Sunday but gave no further details.

Russia’s fuel export restrictions have also added to supply concerns.

Refinery capacity remains strained as demand outpaces supply, with US refiners processing crude at the highest seasonal pace since 2018 despite capacity having fallen by 600,000 barrels per day over the same period.



News Stream
US Heating Oil Extends Rally
US heating oil prices extended their rally above $4.20 per gallon, moving back toward a four-month high as prospects for a deal to reopen the Strait of Hormuz dimmed. President Donald Trump made demands on Iran, further dimming hopes for an agreement to reopen the waterway. This followed Iran’s statement that a deal with Oman on new shipping routes was close to being finalized, while warning that reopening the waterway remained conditional on Washington meeting additional demands. Meanwhile, an attack claimed by Iran-backed Houthi militants on Saudi Arabia’s Jazan refinery in the Red Sea compounded supply concerns. Saudi authorities said the fire was extinguished early Sunday but gave no further details. Russia’s fuel export restrictions have also added to supply concerns. Refinery capacity remains strained as demand outpaces supply, with US refiners processing crude at the highest seasonal pace since 2018 despite capacity having fallen by 600,000 barrels per day over the same period.
2026-08-11
US Heating Oil Soars by Over 7%
US heating oil prices surged more than 7% to around $4.19 per gallon after Iran-backed Houthi militants claimed an attack on Saudi Arabia’s Jazan refinery near the Red Sea. Saudi authorities said the resulting fire was extinguished early Sunday, without providing further details. The incident added to pressure on an already tight global diesel market, as disruptions to shipping through the Strait of Hormuz compounded the impact of Russia’s fuel export restrictions. Refinery capacity is also under strain as fuel demand continues to outpace supply, with US refiners processing crude at the highest seasonal rate since 2018 despite capacity having fallen by nearly 600,000 barrels per day over the same period. Meanwhile, Iran and Oman have yet to finalize a deal to reopen Hormuz. Iran said the agreement was “very close,” but insisted that the US must lift its blockade and provide compensation before reopening the waterway.
2026-08-10
Heating Oil Rises for Fourth Session
US heating oil futures rose to around $3.96 per gallon on Monday, gaining for a fourth consecutive session, driven by uncertainty over the reopening of the Strait of Hormuz. Iran said a deal with Oman to establish new shipping lanes was nearing completion but stressed that the waterway would only reopen if Washington met additional conditions. Tehran also said it was not engaged in direct negotiations with the US and would not initiate talks while Washington continues to breach an interim deal signed in June, despite US claims that an agreement is near. Supply concerns were further heightened after Iran-aligned Houthis said they attacked Saudi Aramco’s Jazan refinery. Meanwhile, Russia and Ukraine have stepped up attacks on each other, raising the risk of further strikes on energy facilities after Ukraine recently carried out a long-range drone attack on a major Russian oil refinery. Against this backdrop, Moscow extended its gasoline and diesel export ban through January 2027.
2026-08-10