Heating Oil Falls to 2-Week Low

2026-09-23 01:35 By Kyrie Dichosa 1 min. read

US heating oil prices fell below $4.90 per gallon, the lowest level in two weeks, as recovering Middle East oil flows and signs of progress in diplomatic talks eased immediate supply concerns.

Saudi Arabia restarted its East-West oil pipeline at a reduced rate after a drone-related shutdown, with Yanbu exports expected to resume.

However, full flows could take six to eight weeks to restore as repairs continue.

Meanwhile, Iran said it could reopen the Strait of Hormuz within a week if the US eases military pressure and lifts its blockade, while President Trump said US-Iranian officials held a “very productive” meeting.

Nevertheless, heating oil demand could strengthen as winter approaches, while refinery maintenance may constrain distillate production.

Russia is also set to extend diesel export restrictions through October, adding to already-tight global distillate supplies.

Industry data showed distillate inventories fell by 2.2 million barrels in the week ended September 18.



News Stream
Heating Oil Falls to 2-Week Low
US heating oil prices fell below $4.90 per gallon, the lowest level in two weeks, as recovering Middle East oil flows and signs of progress in diplomatic talks eased immediate supply concerns. Saudi Arabia restarted its East-West oil pipeline at a reduced rate after a drone-related shutdown, with Yanbu exports expected to resume. However, full flows could take six to eight weeks to restore as repairs continue. Meanwhile, Iran said it could reopen the Strait of Hormuz within a week if the US eases military pressure and lifts its blockade, while President Trump said US-Iranian officials held a “very productive” meeting. Nevertheless, heating oil demand could strengthen as winter approaches, while refinery maintenance may constrain distillate production. Russia is also set to extend diesel export restrictions through October, adding to already-tight global distillate supplies. Industry data showed distillate inventories fell by 2.2 million barrels in the week ended September 18.
2026-09-23
Heating Oil Retreats Further
US heating oil prices fell below $4.90 per gallon, retreating further from the record high reached above $5.2 last week, as improved flows through the Strait of Hormuz and renewed diplomatic efforts eased near-term supply concerns. Satellite data showed Saudi oil loadings in the Persian Gulf surged, suggesting exports shifted back toward the Strait of Hormuz as the East-West pipeline shutdown persisted, though reports indicated the line could partially restart within days. Nevertheless, with winter approaching, demand could strengthen, while refinery maintenance may curb production and further tighten already-constrained supplies. EIA data showed distillate inventories, including diesel and heating oil, remained 13% below their five-year average in the week ending September 11. Meanwhile, Russia plans to extend diesel export restrictions through October, while Ukrainian strikes have disrupted output at major refineries, further tightening global distillate supplies.
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