Heating Oil Falls to 1-Month Low

US heating oil prices extended losses below $4.50 per gallon on Friday, the lowest in one month, after G7 agreed to consider releasing up to 100 million barrels of emergency oil and diesel reserves to ease fuel costs. The coordinated release is expected to take place over four months, French President Emmanuel Macron said. Macron indicated that the initiative aims to bring down prices following pressure from the Trump administration to address tightening fuel markets. Supply has been constrained by disruptions in the Persian Gulf, Ukrainian attacks on Russian refineries and Moscow’s extension of its diesel-export restrictions through October. In the US, EIA data showed distillate inventories at their lowest seasonal level on record.

US heating oil prices slipped below $4.50 per gallon on Friday, extending losses for the second session, as efforts to relieve a global fuel shortage raised hopes of improved availability. European Union members are discussing a proposal to release emergency oil and diesel reserves, following pressure from Washington to help stabilise prices and avoid restrictions on US fuel exports. Treasury Secretary Scott Bessent urged European partners to contribute, while President Donald Trump was less inclined to impose an export ban because of the risk of further domestic price increases. However, heating oil remains close to its mid-September record of $5.20 per gallon. In the US, EIA data showed distillate inventories at their lowest seasonal level on record. Supply has been constrained by disruptions in the Persian Gulf, Ukrainian attacks on Russian refineries and Moscow’s extension of its diesel-export restrictions through October.

US heating oil prices eased below $4.60 per gallon after President Donald Trump appeared less inclined to restrict diesel exports, amid concerns that such a move could trigger another surge in fuel costs. The European Union is meanwhile discussing a coordinated response after Washington asked Germany and France to release emergency diesel reserves, while officials indicated that additional European supplies could reach the market. Despite the decline, prices remain close to the record $5.20 reached in mid-September. Refined-product markets remain under pressure even as Middle Eastern crude flows approach pre-war levels. Supply has been constrained by disruptions in the Persian Gulf, Ukrainian attacks on Russian refineries and Moscow’s extension of its diesel-export restrictions through October. China has also canceled some October fuel shipments as it prioritizes domestic demand. In the US, EIA data showed distillate inventories at their lowest seasonal level on record.