11.08.202607:04:31UTC+00US Heating Oil Extends Rally

US heating oil prices extended their rally above $4.20 per gallon, approaching a four-month high as the outlook for a deal to reopen the Strait of Hormuz deteriorated. President Donald Trump issued new demands on Iran, further undermining prospects for an agreement to restore traffic through the key shipping lane. This came after Iran said it was close to finalizing a deal with Oman on alternative shipping routes, while stressing that any reopening of the strait would still depend on Washington meeting additional conditions. At the same time, supply concerns were exacerbated by an attack claimed by Iran-backed Houthi militants on Saudi Arabia’s Jazan refinery in the Red Sea. Saudi officials reported that the fire was extinguished early Sunday but released no further details. Russia’s restrictions on fuel exports added yet another layer of pressure on global supplies. Refinery capacity remains tight as demand outstrips supply, with US refiners running crude at the fastest seasonal rate since 2018, even though total capacity has declined by 600,000 barrels per day over the same period.