Heating Oil Resumes Decline

2026-08-27 00:59 By Kyrie Dichosa 1 min. read

US heating oil futures resumed their decline to around $4.20 per gallon on Thursday, after gaining in the previous session, as markets weighed mixed geopolitical developments.

Iran and Oman agreed on how to divide their respective shares of the Strait of Hormuz’s waters and related revenues, though Tehran said an agreement with Oman alone would not be enough to reopen the key waterway.

Crude also appeared to be moving out of the Persian Gulf.

Limiting losses, Russia is reportedly preparing to intensify its attacks on Ukraine after determining that peace negotiations have reached a dead end.

The developments raised concerns over prolonged Russian refined-product export restrictions as Ukrainian strikes pushed refinery runs toward multiyear lows.

Meanwhile, EIA data showed US distillate stockpiles fell by a larger-than-expected 2.2 million barrels last week, versus expectations for a 1.6 million-barrel decline, pointing to tight inventories.



News Stream
Heating Oil Resumes Decline
US heating oil futures resumed their decline to around $4.20 per gallon on Thursday, after gaining in the previous session, as markets weighed mixed geopolitical developments. Iran and Oman agreed on how to divide their respective shares of the Strait of Hormuz’s waters and related revenues, though Tehran said an agreement with Oman alone would not be enough to reopen the key waterway. Crude also appeared to be moving out of the Persian Gulf. Limiting losses, Russia is reportedly preparing to intensify its attacks on Ukraine after determining that peace negotiations have reached a dead end. The developments raised concerns over prolonged Russian refined-product export restrictions as Ukrainian strikes pushed refinery runs toward multiyear lows. Meanwhile, EIA data showed US distillate stockpiles fell by a larger-than-expected 2.2 million barrels last week, versus expectations for a 1.6 million-barrel decline, pointing to tight inventories.
2026-08-27
Heating Oil Extends Retreat
US heating oil futures extended their retreat to around $4.15 per gallon, hitting a two-week low, following reports that Iran and Oman discussed an interim framework aimed at restoring shipping through the Strait of Hormuz. The proposal includes a temporary maritime corridor to facilitate vessel traffic through the key oil chokepoint. Further negotiations are expected to cover permanent transit routes, traffic management, information sharing and maritime security arrangements. At the same time, Washington’s latest steps to pressure Iran were milder than expected, as the US held off on secondary sanctions against its trading partners. Nevertheless, elevated diesel refining margins and low US distillate inventories highlighted persistent tightness in refined-product markets, with stocks around 12–13% below the five-year average ahead of fall maintenance and the winter heating season.
2026-08-26
Heating Oil Holds Losses
US heating oil futures traded around $4.28 per gallon, holding most of their losses from the previous session, as markets assessed intensified US economic pressure on Iran aimed at reopening the Strait of Hormuz. The Trump administration announced plans to impose secondary sanctions on entities facilitating Iran’s economy as part of a new campaign dubbed “Operation Economic Outcast.” Treasury Secretary Scott Bessent said the US was targeting Iran’s financial connections globally and urging other countries to cease economic ties with Tehran. Still, markets remain uncertain whether the measures will ease Iran’s grip on the key waterway or instead prolong disruptions. Meanwhile, elevated diesel refining margins and low US distillate inventories highlighted persistent tightness in refined-product markets, with stocks around 12–13% below the five-year average ahead of the fall maintenance and winter heating season.
2026-08-25