Heating Oil Nears 5-Month High

2026-09-01 01:17 By Kyrie Dichosa 1 min. read

US heating oil prices rose to around $4.45 per gallon, nearing a five-month high and leaving prices about 80% higher than a year earlier, as US distillate inventories remain well below seasonal norms.

Distillate stocks fell by 2.2 million barrels to 103.4 million barrels in the week ending August 21, their lowest August level in comparable records and about 14% below the five-year average.

The drawdown comes as demand is set to strengthen in the coming months, with winter heating needs and seasonal farming activity in both hemispheres likely to lift consumption.

At the same time, Middle East conflict has disrupted refined-fuel flows through the Strait of Hormuz, while Russia’s diesel export restrictions and attacks on its refining infrastructure are further tightening global supplies.

Strong demand is encouraging US refiners to raise output and exports, but additional shipments remain insufficient to offset supply disruptions elsewhere, keeping the refined-fuel market tight.



News Stream
Heating Oil Nears 5-Month High
US heating oil prices rose to around $4.45 per gallon, nearing a five-month high and leaving prices about 80% higher than a year earlier, as US distillate inventories remain well below seasonal norms. Distillate stocks fell by 2.2 million barrels to 103.4 million barrels in the week ending August 21, their lowest August level in comparable records and about 14% below the five-year average. The drawdown comes as demand is set to strengthen in the coming months, with winter heating needs and seasonal farming activity in both hemispheres likely to lift consumption. At the same time, Middle East conflict has disrupted refined-fuel flows through the Strait of Hormuz, while Russia’s diesel export restrictions and attacks on its refining infrastructure are further tightening global supplies. Strong demand is encouraging US refiners to raise output and exports, but additional shipments remain insufficient to offset supply disruptions elsewhere, keeping the refined-fuel market tight.
2026-09-01
Heating Oil Market Tightens as US Inventories Hit Record Low
US heating oil prices remained around $4.40 a gallon, more than 80% higher than a year ago, as supplies fell to their lowest seasonal level on record. US distillate inventories, which include diesel and heating oil, fell to 103.4 million barrels in the week ending August 21, the lowest level recorded for this time of year since comparable data began in the early 1980s. The situation is particularly concerning as demand typically rises in the autumn, driven by winter heating, Northern Hemisphere harvests and Southern Hemisphere planting. The Iran war has disrupted refined-fuel flows through the Strait of Hormuz, while Russia’s suspension of diesel exports and ongoing Ukrainian attacks on refineries are further tightening global availability. US refiners are benefiting from exceptionally strong demand, with diesel refining margins reaching record levels and exports rising sharply. However, increased US shipments remain insufficient to offset the global supply shortfall.
2026-08-28
Heating Oil Extends Gains
US heating oil futures rose to around $4.30 per gallon, extending gains from the previous session as supply concerns intensified amid rising geopolitical risks. US-Iran diplomatic efforts remained stalled after Washington ruled out reviving the terms of a June agreement and said it was not currently negotiating with Tehran. The US has instead intensified pressure through new sanctions earlier this week, which Iran condemned as hostile and ineffective. Meanwhile, Black Sea shipments faced heightened risks as Russia considers intensifying military pressure on Ukraine after determining that peace negotiations have reached a dead end. At the same time, strikes on Russian refineries have disrupted refining capacity, adding to regional fuel supply concerns. In the US, EIA data showed distillate stockpiles fell by a larger-than-expected 2.2 million barrels last week, compared to expectations for a 1.6 million-barrel decline, pointing to tight inventories.
2026-08-28