Heating Oil Slides to 4-Week Low

US heating oil prices fell to $4.52 per gallon, their lowest in four weeks, as Qatari-mediated talks to resolve the US-Iran conflict helped ease concerns over renewed hostilities. US Secretary of State Marco Rubio also said on Saturday that President Trump had not made a decision on fresh strikes against Iran and that Washington remained open to a diplomatic solution. Prices also declined amid prospects of increased fuel supplies. Europe plans to release 42 million barrels from strategic reserves over three months, half of which will be diesel, while additional Chinese export quotas and higher production elsewhere are expected to improve availability. Potentially higher Russian diesel shipments to the US and global markets could also help ease supply tightness following temporary US Treasury authorization for certain transactions involving Russian diesel. However, supply constraints persist, with inventories remaining 10% below their 5-year seasonal average as of October 23.

US heating oil prices fell to around $4.60 a gallon, the lowest level in three weeks, as expectations of stronger fuel supply eased market concerns. Europe plans to release 42 million barrels from strategic reserves over three months, half of which will be diesel, while additional Chinese fuel-export quotas and higher production elsewhere are expected to improve availability. Reports of an agreement to increase Russian diesel supplies to the US and global markets could also ease tightness, following temporary US Treasury authorization for certain transactions involving Russian diesel. However, US distillate inventories fell by 1.5 million barrels in the week ended October 23, leaving stocks 10% below their five-year seasonal average and highlighting persistent domestic supply constraints. Prices also faced pressure as diplomatic contacts between Washington and Tehran reduced some fears of renewed US military strikes on Iran and further disruptions to Middle Eastern energy flows.

Heating oil prices in the US resumed their decline to around $4.70 per gallon amid expectations of increased Russian diesel supplies. US Energy Secretary Chris Wright said Washington could allow additional Russian diesel shipments under a temporary sanctions waiver. Russian refineries also increased crude processing by around 25% in the second half of October compared with the beginning of the month, while diesel output rose to an estimated 225,000 metric tons per day. Meanwhile, the US plans to exchange up to 315,000 barrels from its Northeast Home Heating Oil Reserve. However, supply risks remained elevated after Yemen's Iran-aligned Houthis claimed to have struck Saudi Arabia's Ras Tanura refinery, while concerns over possible renewed US military action against Iran persisted. US distillate inventories fell by 1.5 million barrels in the week ended October 23, leaving them 10% below their five-year seasonal average.