2025.12.1016:15:13UTC+00Heating Oil Steadies Near 7-Week Lows

U.S. heating oil futures stabilized at approximately $2.26 per gallon, maintaining levels close to a seven-week low. This stability was influenced by expectations of stronger seasonal demand and indications of tighter crude oil feedstock, which counterbalance the substantial increases in U.S. distillate inventories. During the week ending December 5th, U.S. commercial crude oil inventories declined by 1.812 million barrels, falling short of the anticipated 2.3 million-barrel drawdown. This reduction in available feedstock has raised concerns that refineries might reduce their operations as winter approaches. Weather forecasts predict significantly colder temperatures for the Midwest and Northeast, which could increase short-term consumption and enhance the value of stored distillates in local markets. Conversely, U.S. distillate inventories experienced a rise of 2.502 million barrels within the same week, following a 2.059 million-barrel increase the preceding week, surpassing market expectations of a 1.9 million-barrel build, helping to balance potential price increases.