Heating Oil Nears 4-Month High

US heating oil futures advanced toward $4.30 per gallon on Wednesday, approaching a four-month high amid mounting concerns over tight distillate supplies.

Yemen’s Houthis recently attacked Saudi Arabia’s Jazan refinery, which has been shut since July 27 following an earlier strike by the group.

Plans to restart the facility have since been postponed from August 15 to August 30.

Russia’s fuel export restrictions have also added to global supply concerns.

This comes on top of uncertainty over the Strait of Hormuz, where markets are assessing the prospects for a potential US-Iran agreement on the key waterway.

Pakistan’s defense minister said Washington and Tehran were “close to some sort of arrangement,” while a Qatari official cited by Al Jazeera said Iran-Oman talks had reached an advanced stage.

Meanwhile, US refiners are processing crude at the highest seasonal pace since 2018, despite capacity falling by 600,000 barrels per day over the same period.