23.01.202615:06:01UTC+00Heating Oil Rebounds to Near 2-Month High

Heating oil futures in the United States have surged past $2.43 per gallon, reaching their highest level in nearly two months. This increase is largely attributed to rising crude oil costs, marking the fifth consecutive week of gains. These gains have been spurred by heightened geopolitical tensions and emerging supply concerns. Oil benchmarks gained strength following President Trump's indication of possible military action against Iran, coinciding with the deployment of US warships, including an aircraft carrier and guided missile destroyers, to the Middle East. This move has revived concerns over potential disruptions to oil flows in the region. Further compounding supply worries are ongoing production outages in Kazakhstan, particularly at the significant Tengiz oil field, which remains offline, thereby constraining short-term export levels. Additionally, the weakening of the US dollar has enhanced the affordability of oil for international buyers. Alongside the rising feedstock costs, there is an anticipated increase in demand for heating oil due to forecasts predicting a severe Arctic cold spell across extensive areas of the US, likely boosting winter heating consumption.