Heating Oil Rises Toward Record
US heating oil prices rose toward $4.80 per gallon, moving close to their recent peak of $5.20 reached in mid-September, driven by persistent supply concerns. The potential for further escalation between the US and Iran and continued attacks in the Middle East raised concerns over energy flows despite increased regional shipments. Meanwhile, disruptions to Russia’s refining operations and extended diesel-export restrictions, along with China’s reported suspension of October fuel exports, added to global diesel supply constraints. Hurricane Isaias in the Gulf of Mexico also threatened to disrupt oil and refining operations, with Gulf Coast refineries accounting for about half of US refining capacity of 18.2 million bpd. Against this backdrop, EIA data showed distillate stockpiles, which include diesel and heating oil, fell by 42 thousand barrels in the week ended October 2, leaving inventories 12% below the five-year average.
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20 reached in mid-September, driven by persistent supply concerns. The potential for further escalation between the US and Iran and continued attacks in the Middle East raised concerns over energy flows despite increased regional shipments. Meanwhile, disruptions to Russia’s refining operations and extended diesel-export restrictions, along with China’s reported suspension of October fuel exports, added to global diesel supply constraints. 2 million bpd.
Against this backdrop, EIA data showed distillate stockpiles, which include diesel and heating oil, fell by 42 thousand barrels in the week ended October 2, leaving inventories 12% below the five-year average.