Heating Oil Holds Near Record High

US heating oil prices held around $5.20 per gallon, remaining near their record high and leaving them about 120% higher than a year earlier amid concerns over tightening distillate markets. EIA data showed distillate inventories, including diesel and heating oil, rose by 1.6 million barrels in the week ended September 11, but remained 13% below their five-year average, underscoring continued inventory tightness. This comes amid disruptions on multiple fronts, with Middle East supply constraints compounded by Ukrainian attacks on Russian refineries and Russia’s export curbs. Some pressure eased after Saudi Arabia offered additional crude through Oman. Meanwhile, with the US harvest season underway and the winter heating season approaching, distillate demand could strengthen further, while seasonal refinery maintenance could constrain production and add pressure to already-tight supplies.

Heating Oil increased 5.03% to 5.2112 USD/Gal

US heating oil prices held above $5.20 per gallon, hovering at their record high, as mounting supply disruptions raised concerns over already-tight distillate markets. Saudi Arabia’s closure of the East-West oil pipeline has compounded ongoing shipping disruptions through the Strait, deepening concerns over crude availability and further tightening refinery feedstock supplies. Separately, disruptions along Yemen’s Red Sea coast are constraining shipping through the Bab el-Mandeb Strait, while Ukrainian attacks on Russian refineries are further limiting diesel supplies amid Russia’s export curbs. EIA data showed US distillate inventories remained 13% below the five-year average in the week ended September 4, while refineries operated at 97.8% of capacity, leaving limited room to boost output. With seasonal agricultural activity underway and the winter heating season approaching, demand could strengthen further, adding pressure to already-tight distillate supplies.