Heating Oil Futures Ease

US heating oil futures eased to around $4.65 per gallon but remained close to the record $5.20 reached in mid-September, as reduced risks of a US diesel export ban countered expectations of additional diesel supplies from Europe. President Donald Trump signaled that his support for restricting diesel exports may be cooling amid concerns over unintended price increases, while Energy Secretary Chris Wright said the administration expected announcements soon from Europe on additional diesel supplies. The White House also urged the EU to draw down emergency diesel inventories to help ease global prices. Meanwhile, Russia extended its restrictions on most diesel exports through October, keeping global distillate markets tight. US distillate inventories also remain low ahead of the winter heating season, with EIA data showing stockpiles fell by 2.3 million barrels in the week ended September 25.

Heating oil futures climbed above $4.70 per gallon, approaching the record $5.20 reached in mid-September, as tighter diesel supplies added pressure to fuel markets ahead of winter. Russia has extended its restrictions on most diesel exports through October, while also maintaining curbs on bunker fuel and gasoil shipments. The measures were introduced after Ukrainian attacks on Russian refineries reduced processing rates and have been repeatedly prolonged since July. Before the restrictions, Russia supplied about 10% of global seaborne diesel volumes, making the loss of those barrels particularly significant amid disruptions linked to the Strait of Hormuz. In the US, President Donald Trump is considering limiting diesel exports to contain domestic prices.

Heating oil futures rose above $4.5 per gallon, not far from the record high of $5.2 reached in mid-September, tracking volatile oil prices as traders continued to assess developments in the Middle East and the lack of progress in negotiations between the US and Iran aimed at ending the war. The conflict between Russia and Ukraine is also disrupting fuel trade routes, adding to pressure on the energy market. Meanwhile, US President Trump said he was still considering “very seriously” a ban on US diesel exports to curb high domestic fuel prices, despite other administration officials pursuing alternative measures. Energy Secretary Chris Wright said officials were working with refiners on voluntary export curbs, while the White House was also considering broader sales of tax-exempt, red-dyed diesel. On the data front, US distillate inventories were around 12% below the five-year average, leaving heating oil supplies relatively tight as the winter heating season approaches.