Heating Oil Slides to 4-Week Low
US heating oil prices fell to $4.56 per gallon, their lowest in four weeks, as ongoing Qatari-mediated talks to resolve the US-Iran conflict eased concerns over renewed hostilities. US Secretary of State Marco Rubio also said on Saturday that President Trump had not made a decision on fresh strikes against Iran and that Washington remained open to a diplomatic solution. Prospects of increased fuel supplies added further pressure on prices. Europe plans to release 42 million barrels from strategic reserves over three months, half of which will be diesel, while additional Chinese export quotas and higher production elsewhere are expected to improve availability. Potentially higher Russian diesel shipments to the US and global markets could also help ease supply tightness following temporary US Treasury authorization for certain transactions involving Russian diesel. However, supply constraints persist, with inventories remaining 10% below their 5-year seasonal average as of October 23.
US heating oil prices fell to $4.56 per gallon, their lowest in four weeks, as ongoing Qatari-mediated talks to resolve the US-Iran conflict eased concerns over renewed hostilities. US Secretary of State Marco Rubio also said on Saturday that President Trump had not made a decision on fresh strikes against Iran and that Washington remained open to a diplomatic solution. Prospects of increased fuel supplies added further pressure on prices. Europe plans to release 42 million barrels from strategic reserves over three months, half of which will be diesel, while additional Chinese export quotas and higher production elsewhere are expected to improve availability.
Potentially higher Russian diesel shipments to the US and global markets could also help ease supply tightness following temporary US Treasury authorization for certain transactions involving Russian diesel. However, supply constraints persist, with inventories remaining 10% below their 5-year seasonal average as of October 23.