Heating Oil Moves Toward Record
US heating oil futures rose to around $5 per gallon, moving closer to the record high touched in mid-September, after industry data showed the inventory draw. API data showed that US distillate stocks fell by 2.6 million barrels in the week ending October 16, underscoring tight supplies. This compounded Middle East supply concerns, as attacks on oil tankers near the Strait of Hormuz heightened fears shipping disruptions, while Houthi attacks on Saudi infrastructure further raised concerns over additional supply losses. However, Gulf oil flows remained more resilient than feared, with exports exceeding pre-war levels in mid-October. Separately, traders continued to weigh the potential for increased Russian fuel exports after President Trump waived new Russia-related sanctions and tariffs. Secretary of State Marco Rubio said the administration could take up to 60 days to assess their economic impact, leaving uncertainty over whether the move would help ease fuel supply pressures.
US heating oil futures rose to around $5 per gallon, moving closer to the record high touched in mid-September, after industry data showed the inventory draw. API data showed that US distillate stocks fell by 2.6 million barrels in the week ending October 16, underscoring tight supplies. This compounded Middle East supply concerns, as attacks on oil tankers near the Strait of Hormuz heightened fears shipping disruptions, while Houthi attacks on Saudi infrastructure further raised concerns over additional supply losses. However, Gulf oil flows remained more resilient than feared, with exports exceeding pre-war levels in mid-October.
Separately, traders continued to weigh the potential for increased Russian fuel exports after President Trump waived new Russia-related sanctions and tariffs. Secretary of State Marco Rubio said the administration could take up to 60 days to assess their economic impact, leaving uncertainty over whether the move would help ease fuel supply pressures.