Heating Oil Rises After 3-Day Decline

US heating oil futures rose above $4.70 per gallon, halting a three-day decline, as weaker diplomatic hopes in the Middle East outweighed uncertainty over potential US diesel export restrictions. President Donald Trump rejected Iran’s conditional proposal to reopen the Strait of Hormuz, dimming prospects for a quick resumption of traffic through the key waterway, although he said he expects negotiations to resume this week. Separately, Trump said he is still considering “very seriously” a US ban on diesel exports to curb high domestic fuel prices, despite other administration officials pursuing alternatives. Energy Secretary Chris Wright said officials are working with refiners on voluntary export curbs, while oil industry groups called for suspending the federal diesel tax instead. Elsewhere, the onset of winter could boost heating demand and pressure supplies, with US distillate inventories already around 12% below the five-year average, EIA data showed.

US heating oil futures fell below $4.70 per gallon, declining for a third consecutive session to a two-week low, as uncertainty over US diesel export restrictions persisted. The White House denied reports of a planned 90-day ban, while Energy Secretary Chris Wright said the administration was instead seeking voluntary curbs from major refiners. Still, President Donald Trump earlier said he supported restricting diesel exports, leaving the administration’s approach unclear. Meanwhile, diplomatic hopes between the US and Iran eased some supply concerns, as negotiators reportedly explored a phased path to end the war, including reopening the Strait of Hormuz and lifting Washington’s economic blockade of Iran. However, continued attacks in the Middle East kept broader de-escalation hopes at bay. Separately, the approaching winter heating season could lift demand and further tighten supplies, with distillate inventories already about 12% below the five-year average, according to the EIA.

Heating Oil increased 5.08% to 5.0192 USD/Gal