21.11.202514:18:01UTC+00Heating Oil Extends Downturn

Heating oil futures in the U.S. have dropped to approximately $2.45 per gallon, down from the highs seen in April 2024. This decline comes as the previously tight distillate market finds some relief, coinciding with a decrease in crude oil costs due to renewed diplomatic efforts. Distillate inventories, which had experienced six consecutive weeks of significant declines, saw an unexpected increase of 171,000 barrels for the week ending November 14, easing concerns about the severity of the supply shortage. Concurrently, crude oil prices decreased following signals from President Volodymyr Zelenskiy indicating a willingness to engage in peace negotiations. Additionally, reports suggest that a plan developed by the U.S. and Russia—set to be discussed with President Donald Trump in the upcoming days—could involve territorial concessions and the easing of certain sanctions. Such an agreement might pave the way for increased oil exports from Russia, potentially alleviating oversupply issues.