2026.06.0103:25:27UTC+00Heating Oil Futures Rise

US heating oil futures climbed nearly 3% to approach $3.60 per gallon in early June, recovering a portion of recent losses amid persistent uncertainty over a potential US–Iran peace agreement that could alleviate supply pressures. Reports indicated that both parties were considering revisions to a draft deal aimed at extending a ceasefire and restoring access through the Strait of Hormuz, though the extent of any substantive progress remained unclear.

Geopolitical risks were further heightened by escalating tensions in Lebanon, where Israeli advances and clashes with Hezbollah increased the threat of regional spillover. Distillate exports from the area have been severely disrupted since the conflict erupted in March, constraining refinery operations and driving heating oil futures to a record high of $4.60 per gallon that month.

Underscoring the tight supply backdrop, US distillate inventories—which include diesel and heating oil—declined by 2.107 million barrels in the week ending May 22, exceeding expectations for a 1 million barrel draw.