Heating Oil Slips on Tax-Exempt Diesel
US heating oil prices fell to around $4.51 per gallon as President Donald Trump signed an executive order expanding access to tax-exempt diesel in the latest bid to lower diesel costs. The order waives the off-road requirement for red-dyed diesel, allowing it to be purchased tax-free for any use. The G7 also pledged last week to release 100 million barrels of diesel from strategic emergency reserves, although the amount of additional supply remained unclear. Nevertheless, heating oil prices remained close to their record high of $5.20 reached in mid-September as refined product markets remained tight. EIA data showed US distillate inventories at historically low levels, while refinery maintenance and seasonal demand were expected to keep supplies tight. Disruptions in the Middle East and Russia, along with Moscow’s extended diesel-export restrictions and China’s suspension of October fuel exports, further constrained global diesel availability.
51 per gallon as President Donald Trump signed an executive order expanding access to tax-exempt diesel in the latest bid to lower diesel costs. The order waives the off-road requirement for red-dyed diesel, allowing it to be purchased tax-free for any use. The G7 also pledged last week to release 100 million barrels of diesel from strategic emergency reserves, although the amount of additional supply remained unclear. 20 reached in mid-September as refined product markets remained tight.
EIA data showed US distillate inventories at historically low levels, while refinery maintenance and seasonal demand were expected to keep supplies tight. Disruptions in the Middle East and Russia, along with Moscow’s extended diesel-export restrictions and China’s suspension of October fuel exports, further constrained global diesel availability.