Heating Oil Holds Near Record

US heating oil prices held above $4.80 per gallon, near their mid-September record of $5.20, as supply pressures persisted ahead of peak winter demand. Tanker attacks in the Strait of Hormuz and fresh US sanctions on Iran intensified concerns over Middle Eastern energy shipments, although President Trump's remarks eased fears of further US military action. Separately, Hurricane Isaias forced the shutdown of about 1.3 million barrels per day of oil production in the US Gulf of Mexico, or roughly 63% of regional output, adding to near-term supply disruptions. Diesel supplies also faced pressure from disruptions to Russian refineries, extended Russian diesel-export restrictions and China's reported suspension of fuel exports for October. The tight backdrop was reinforced by EIA data showing US distillate inventories, which include diesel and heating oil, were 12% below the five-year average in the week ended October 2.

Heating Oil increased 5.01% to 4.8545 USD/Gal

US heating oil prices rose toward $4.80 per gallon, moving close to their recent peak of $5.20 reached in mid-September, driven by persistent supply concerns. The potential for further escalation between the US and Iran and continued attacks in the Middle East raised concerns over energy flows despite increased regional shipments. Meanwhile, disruptions to Russia’s refining operations and extended diesel-export restrictions, along with China’s reported suspension of October fuel exports, added to global diesel supply constraints. Hurricane Isaias in the Gulf of Mexico also threatened to disrupt oil and refining operations, with Gulf Coast refineries accounting for about half of US refining capacity of 18.2 million bpd. Against this backdrop, EIA data showed distillate stockpiles, which include diesel and heating oil, fell by 42 thousand barrels in the week ended October 2, leaving inventories 12% below the five-year average.