Heating Oil Hits Record High
US heating oil prices climbed to around $5.10, reaching a record high as mounting supply disruptions raised concerns over already-tight distillate markets. Saudi Arabia’s closure of its East-West oil pipeline has raised crude supply concerns and could further tighten refinery feedstock availability, while energy infrastructure attacks and disruptions to shipping through the Strait add to supply risks. Separately, disruptions along Yemen’s Red Sea coast are constraining shipping through the Bab el-Mandeb Strait, while Ukrainian attacks on Russian refineries are further limiting diesel supplies amid Russia’s export curbs. EIA data showed US distillate inventories, which include diesel and heating oil, increased by 2.1 million barrels in the week ended September 4 but remained 13% below the five-year average. With seasonal agricultural activity underway and the winter heating season approaching, demand could strengthen further, adding pressure to already-tight distillate supplies.
10, reaching a record high as mounting supply disruptions raised concerns over already-tight distillate markets. Saudi Arabia’s closure of its East-West oil pipeline has raised crude supply concerns and could further tighten refinery feedstock availability, while energy infrastructure attacks and disruptions to shipping through the Strait add to supply risks. Separately, disruptions along Yemen’s Red Sea coast are constraining shipping through the Bab el-Mandeb Strait, while Ukrainian attacks on Russian refineries are further limiting diesel supplies amid Russia’s export curbs. 1 million barrels in the week ended September 4 but remained 13% below the five-year average.
With seasonal agricultural activity underway and the winter heating season approaching, demand could strengthen further, adding pressure to already-tight distillate supplies.