Heating Oil Holds Near Record
US heating oil prices held above $4.80 per gallon, near their mid-September record of $5.20, as supply pressures persisted ahead of peak winter demand. Tanker attacks in the Strait of Hormuz and fresh US sanctions on Iran intensified concerns over Middle Eastern energy shipments, although President Trump's remarks eased fears of further US military action. Separately, Hurricane Isaias forced the shutdown of about 1.3 million barrels per day of oil production in the US Gulf of Mexico, or roughly 63% of regional output, adding to near-term supply disruptions. Diesel supplies also faced pressure from disruptions to Russian refineries, extended Russian diesel-export restrictions and China's reported suspension of fuel exports for October. The tight backdrop was reinforced by EIA data showing US distillate inventories, which include diesel and heating oil, were 12% below the five-year average in the week ended October 2.
20, as supply pressures persisted ahead of peak winter demand. Tanker attacks in the Strait of Hormuz and fresh US sanctions on Iran intensified concerns over Middle Eastern energy shipments, although President Trump's remarks eased fears of further US military action. 3 million barrels per day of oil production in the US Gulf of Mexico, or roughly 63% of regional output, adding to near-term supply disruptions. Diesel supplies also faced pressure from disruptions to Russian refineries, extended Russian diesel-export restrictions and China's reported suspension of fuel exports for October.
The tight backdrop was reinforced by EIA data showing US distillate inventories, which include diesel and heating oil, were 12% below the five-year average in the week ended October 2.