Heating Oil Surges Nearly 5%
Heating oil futures in the US surged to $4.92 per gallon on Tuesday, the highest in three weeks and close to last month's record high of $5.30, as unprecedented supply tightness returned to the market's forefront. Russia and Ukraine exchanged strikes against each other's power and gas facilities. The strikes erased already-dim expectations that the energy ceasefire touted by President Trump would hold, stoking fears of continued attacks on major Russian refineries. The developments also deepened doubts that Russia would release 36 million barrels of diesel for export, a pledge that faced skepticism upon announcement, as a domestic distillate shortage prompted the Moscow to halt exports last quarter. Meanwhile, attacks on vessels crossing the Persian Gulf kept tanker shipping costs near record highs and curtailed exports from the region. Shortages of crude oil for major refineries had already driven prices to a record high and prompted US officials to briefly consider an export ban.
30, as unprecedented supply tightness returned to the market's forefront. Russia and Ukraine exchanged strikes against each other's power and gas facilities. The strikes erased already-dim expectations that the energy ceasefire touted by President Trump would hold, stoking fears of continued attacks on major Russian refineries. The developments also deepened doubts that Russia would release 36 million barrels of diesel for export, a pledge that faced skepticism upon announcement, as a domestic distillate shortage prompted the Moscow to halt exports last quarter.
Meanwhile, attacks on vessels crossing the Persian Gulf kept tanker shipping costs near record highs and curtailed exports from the region. Shortages of crude oil for major refineries had already driven prices to a record high and prompted US officials to briefly consider an export ban.