Heating oil futures hovered around $3.9 per gallon, close to a 1-month low of $3.74 hit on June 30th, as investors balance tight supplies and weak demand concerns from the global economic slowdown. Production of heating oil, a derivative of crude oil, is set to remain lower due to supply outages in Libya and expected shutdowns in Norway. Further, supply concerns aggravated as the OPEC+ group of members, including Russia refrained from discussing output strategy from September. Meanwhile, the latest EIA storage report showed that heating oil stocks declined for the fourth week, reflecting strong demand.
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 July of 2022.
Heating oil is expected to trade at 4.10 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 4.61 in 12 months time.