Heating oil futures were trading below the $4.5-per-gallon level, moving along with falling crude prices on fears that slowing global growth could hit demand. Still, prices remain elevated, having touched a record high of $4.61 earlier this month, supported by an extremely tight market. The latest EIA weekly report showed that distillate fuel production went down by 57 thousand barrels while stockpiles fell by 374 thousand. Elsewhere, the EU also has tight inventory levels of distillate fuels. The bloc’s embargo on Russian oil and oil derivatives means that American buyers face more competition in global markets.
Historically, Heating oil reached an all time high of 5.86 in April of 2022. Heating oil - data, forecasts, historical chart - was last updated on June of 2022.
Heating oil is expected to trade at 4.53 USD/GAL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.08 in 12 months time.