US heating oil rises toward five-month high near $4.45/gal
US heating oil prices rose to around $4.45 per gallon, nearing a five-month high. Distillate inventories fell 2.2 million barrels to 103.4 million in the week ending Aug. 21, while global supply disruptions keep the refined-fuel market tight.
US heating oil prices rose to around $4.45 per gallon, nearing a five-month high and leaving prices about 80% higher than a year earlier, as US distillate inventories remain well below seasonal norms.
Distillate stocks fell by 2.2 million barrels to 103.4 million barrels in the week ending August 21, their lowest August level in comparable records and about 14% below the five-year average.
The drawdown comes as demand is set to strengthen in the coming months, with winter heating needs and seasonal farming activity in both hemispheres likely to lift consumption.
At the same time, Middle East conflict has disrupted refined-fuel flows through the Strait of Hormuz, while Russia’s diesel export restrictions and attacks on its refining infrastructure are further tightening global supplies.
Strong demand is encouraging US refiners to raise output and exports, but additional shipments remain insufficient to offset supply disruptions elsewhere, keeping the refined-fuel market tight.