US Heating Oil Prices Ease
US heating oil prices eased to around $5.05 per gallon, retreating from a record high of $5.26 reached earlier this week, as rising inventories and expectations of alternative routes for Middle Eastern barrels offered some respite from tight distillate supplies. EIA data showed distillate inventories, including diesel and heating oil, rose by 1.6 million barrels in the week ended September 11 but remained 13% below their five-year average. Meanwhile, Saudi Arabia was reportedly seeking to restore about half the capacity of its East-West oil pipeline within days after drone attacks halted the key link to the Red Sea, while offering additional crude cargoes to Asian refiners via ship-to-ship transfers off Oman’s Sohar port. Still, supply risks persisted as Saudi Arabia and Iran-backed Houthi forces exchanged fresh strikes. With winter approaching, distillate demand could strengthen, while refinery maintenance could constrain production and put further pressure on already-tight supplies.
26 reached earlier this week, as rising inventories and expectations of alternative routes for Middle Eastern barrels offered some respite from tight distillate supplies. 6 million barrels in the week ended September 11 but remained 13% below their five-year average. Meanwhile, Saudi Arabia was reportedly seeking to restore about half the capacity of its East-West oil pipeline within days after drone attacks halted the key link to the Red Sea, while offering additional crude cargoes to Asian refiners via ship-to-ship transfers off Oman’s Sohar port. Still, supply risks persisted as Saudi Arabia and Iran-backed Houthi forces exchanged fresh strikes.
With winter approaching, distillate demand could strengthen, while refinery maintenance could constrain production and put further pressure on already-tight supplies.