Heating Oil Hits 21-week High

US heating oil prices surged past $4.70 per gallon in early September, hitting a fresh record and leaving prices about 100% higher than a year earlier amid tightening distillate markets. Supply risks have intensified as escalating tensions between the US and Iran raise concerns over oil flows through the Strait of Hormuz, while Ukrainian attacks on Russian refineries have further constrained global refining capacity. US refinery utilization has now remained at or above 95% for 12 consecutive weeks, the longest streak since 2000, indicating that refiners are already operating near capacity with limited room to increase output. Industry data showed that US distillate inventories fell by 300,000 barrels in the week ending August 28, leaving stockpiles under pressure ahead of the winter heating season. Broader refined-fuel markets are also signaling tight conditions, with US diesel futures reaching a 52-month high and the diesel crack spread climbing to a record level.

Heating Oil increased to 4.54 USD/Gal, the highest since April 2026. Over the past 4 weeks, Heating Oil gained 16.98%, and in the last 12 months, it increased 91.02%.

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.