Heating Oil Falls to 3-Week Low
US heating oil prices fell more than 3.5% to $4.63 a gallon, reaching a three-week low as expectations of stronger fuel supply eased market concerns. Europe plans to release 42 million barrels from strategic reserves over three months, half of which will be diesel, while additional Chinese fuel-export quotas and higher production elsewhere are expected to improve availability. Reports of an agreement to increase Russian diesel supplies to the US and global markets could also ease tightness, following temporary US Treasury authorization for certain transactions involving Russian diesel. However, US distillate inventories fell by 1.5 million barrels in the week ended October 23, leaving stocks 10% below their five-year seasonal average and highlighting persistent domestic supply constraints. Prices also faced pressure as diplomatic contacts between Washington and Tehran reduced some fears of renewed US military strikes on Iran and further disruptions to Middle Eastern energy flows.
US heating oil prices fell more than 3.5% to $4.63 a gallon, reaching a three-week low as expectations of stronger fuel supply eased market concerns. Europe plans to release 42 million barrels from strategic reserves over three months, half of which will be diesel, while additional Chinese fuel-export quotas and higher production elsewhere are expected to improve availability. Reports of an agreement to increase Russian diesel supplies to the US and global markets could also ease tightness, following temporary US Treasury authorization for certain transactions involving Russian diesel.
However, US distillate inventories fell by 1.5 million barrels in the week ended October 23, leaving stocks 10% below their five-year seasonal average and highlighting persistent domestic supply constraints. Prices also faced pressure as diplomatic contacts between Washington and Tehran reduced some fears of renewed US military strikes on Iran and further disruptions to Middle Eastern energy flows.