22.10.202515:05:54UTC+00Heating Oil Extends Rebound

U.S. heating oil futures have climbed to approximately $2.25 per gallon, recovering from a four-month low of $2.15 on October 16th. This upswing comes as the distillate market experiences tight conditions alongside a stronger crude oil backdrop, and as the forecast for seasonal demand shows improvement. According to the Energy Information Administration, distillate fuel oil inventories increased by a modest 0.04 million barrels for the week ending October 17th, following a significant drop of around 4.5 million barrels the previous week, keeping stocks well below their five-year average. Concurrently, refinery operations have decreased from their summer peak and are currently below typical seasonal levels, limiting the output of products. Weather predictions have indicated cooler temperatures over the next two weeks across much of the U.S. Northeast and Midwest, raising expectations for increased heating demand. In the meantime, crude oil prices have risen in light of renewed geopolitical and trade uncertainties, posing a threat to both global supply and demand.