US heating oil rises above $4.63/gal as supply constraints tighten
US heating oil prices rose above $4.63 per gallon, moving back toward record highs amid constrained refined-product supply. Escalating Middle East strikes and Strait of Hormuz disruptions add pressure as global diesel remains limited.
63 per gallon, moving back toward their record high as refineries face increasingly tight refined-product supplies. The Middle East war continued to escalate after Iranian-backed Houthis struck Saudi energy facilities, including the Jazan oil refinery. That added to ongoing disruptions and reduced traffic through the Strait of Hormuz, while Ukrainian attacks on Russian refineries further limited global diesel supplies alongside Moscow’s existing export restrictions. Demand could also rise as seasonal agricultural activity picks up, while the approaching winter heating season may add to pressure on distillate supplies.
US refineries were already running at 98% of capacity in the week ended August 28, leaving limited room to boost distillate production further. EIA data showed US distillate fuel stocks were 14% below the five-year average in late August.