Heating Oil Falls to 2-Week Low
US heating oil prices fell below $4.90 per gallon, the lowest level in two weeks, as expectations of improved supply and progress in diplomatic talks eased immediate supply risks. Saudi Arabia restarted its East-West oil pipeline at a reduced rate after a drone-related shutdown, with Yanbu exports expected to resume. However, full flows could take six to eight weeks to restore as repairs continue. Meanwhile, Iran said it could reopen the Strait of Hormuz within a week if the US eases military pressure and lifts its blockade, while President Trump said US-Iranian officials held a “very productive” meeting. Nevertheless, heating oil demand could strengthen as winter approaches, while refinery maintenance may constrain distillate production. Russia is also set to extend diesel export restrictions through October, adding to already-tight global distillate supplies. Industry data showed distillate inventories fell by 2.2 million barrels in the week ended September 18.
90 per gallon, the lowest level in two weeks, as expectations of improved supply and progress in diplomatic talks eased immediate supply risks. Saudi Arabia restarted its East-West oil pipeline at a reduced rate after a drone-related shutdown, with Yanbu exports expected to resume. However, full flows could take six to eight weeks to restore as repairs continue. Meanwhile, Iran said it could reopen the Strait of Hormuz within a week if the US eases military pressure and lifts its blockade, while President Trump said US-Iranian officials held a “very productive” meeting.
Nevertheless, heating oil demand could strengthen as winter approaches, while refinery maintenance may constrain distillate production. Russia is also set to extend diesel export restrictions through October, adding to already-tight global distillate supplies. 2 million barrels in the week ended September 18.