US heating oil jumps above $4.70 to fresh record amid supply tightness

US heating oil prices surged past $4.70 per gallon in early September, hitting a fresh record and leaving prices about 100% higher than a year earlier, driven by tightening distillate supplies.

Industry data showed that US distillate inventories fell by 300,000 barrels in the week ending August 28, adding to evidence of increasingly constrained supplies ahead of the winter heating season.

Tightness is also evident across the broader refined-fuel market, with US diesel futures reaching a 52-month high and the diesel crack spread climbing to a record level.

Meanwhile, US refinery utilization has remained at or above 95% for 12 consecutive weeks, leaving limited spare capacity to replenish inventories or offset further disruptions.

Supply risks remained elevated amid renewed tensions between the US and Iran, raising concerns over oil flows through the Strait of Hormuz, while Ukrainian attacks on Russian refineries have further constrained global refining capacity.