17.09.202514:53:19UTC+00Heating Oil Eases from 1-1/2-Month High

Heating oil futures in the United States have declined to around $2.35 per gallon, following a peak of $2.39 on September 16th, a one-and-a-half-month high. This downturn is attributed to the ongoing accumulation of inventories and an easing in crude feedstock availability. During the week ending September 12th, heating oil inventories in the U.S. increased by 0.67 million barrels, marking the largest rise since the beginning of September and the fourth consecutive weekly increase, indicating a robust supply. This follows a smaller yet significant addition of 0.27 million barrels the week before. Meanwhile, distillate stocks increased by 4.05 million barrels, nearly matching the previous week's build, further contributing to the ample supply. On the other hand, crude oil feedstock inventories dropped by a substantial 9.29 million barrels within the same week, which helped to cushion the decline for distillates. On the demand side, industrial activity remains low, and mild weather forecasts have dampened near-term consumption prospects.