Heating Oil Rises After 3-Day Decline
US heating oil futures rose above $4.70 per gallon, halting a three-day decline, as weaker diplomatic hopes in the Middle East outweighed uncertainty over potential US diesel export restrictions. President Donald Trump rejected Iran’s conditional proposal to reopen the Strait of Hormuz, dimming prospects for a quick resumption of traffic through the key waterway, although he said he expects negotiations to resume this week. Separately, Trump said he is still considering “very seriously” a US ban on diesel exports to curb high domestic fuel prices, despite other administration officials pursuing alternatives. Energy Secretary Chris Wright said officials are working with refiners on voluntary export curbs, while oil industry groups called for suspending the federal diesel tax instead. Elsewhere, the onset of winter could boost heating demand and pressure supplies, with US distillate inventories already around 12% below the five-year average, EIA data showed.
70 per gallon, halting a three-day decline, as weaker diplomatic hopes in the Middle East outweighed uncertainty over potential US diesel export restrictions. President Donald Trump rejected Iran’s conditional proposal to reopen the Strait of Hormuz, dimming prospects for a quick resumption of traffic through the key waterway, although he said he expects negotiations to resume this week. Separately, Trump said he is still considering “very seriously” a US ban on diesel exports to curb high domestic fuel prices, despite other administration officials pursuing alternatives.
Energy Secretary Chris Wright said officials are working with refiners on voluntary export curbs, while oil industry groups called for suspending the federal diesel tax instead. Elsewhere, the onset of winter could boost heating demand and pressure supplies, with US distillate inventories already around 12% below the five-year average, EIA data showed.