Heating oil stays near record highs around $4.60 as supplies tighten
US heating oil prices hovered near $4.60 per gallon, close to the $4.73 record high on September 2. Supplies remain tight as distillate fuel stocks rose 796 thousand barrels to still sit 14% below the five-year average.
73 record set on September 2 and roughly 98% above year-earlier levels as supply concerns persisted. EIA data showed distillate fuel stocks increased by 796 thousand barrels in the week ended August 28, but inventories were still 14% below the five-year average for this time of year. Demand is expected to climb as agricultural states move into harvest and planting seasons, while the approaching winter heating season may add further pressure to distillate supplies. Average US diesel prices have also reached a record high as the market stays constrained by tensions in the Middle East, disruptions to Russian refining capacity and an extended Russian diesel export ban.