Heating Oil Trims Losses

Heating oil prices in the US rose above $4.50 per gallon, paring a more than 5% decline in the previous session as markets assessed the viability of a US-Iran resolution. Reports of a US strike on Iran’s Qeshm Island contrasted with recent diplomatic efforts, including talks between Iranian and Qatari officials, dampening hopes for the two countries to reach a potential deal. Meanwhile, Europe plans to release 42 million barrels from strategic reserves over three months, half of which will be diesel. Additional Chinese export quotas and higher output elsewhere could boost supply. Potentially higher Russian diesel shipments to the US and global markets may also ease tightness following temporary US Treasury authorization for certain transactions involving Russian diesel. However, inventories remained 10% below their five-year seasonal average as of October 23, underscoring lingering supply constraints.

Heating Oil decreased to 4.41 USD/Gal, the lowest since October 2026. Over the past 4 weeks, Heating Oil lost 2.45%, and in the last 12 months, it increased 84.34%.

US heating oil prices fell to $4.42 per gallon, their lowest since late August, 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.