01.09.202601:17:56UTC+00Heating Oil Nears 5-Month High

US heating oil prices have climbed to about $4.45 per gallon, approaching a five-month high and standing roughly 80% above year-ago levels, as US distillate inventories remain significantly below seasonal norms. In the week ending August 21, distillate stocks dropped by 2.2 million barrels to 103.4 million barrels—the lowest August level in comparable records and around 14% under the five-year average.

The drawdown comes just as demand is poised to strengthen in the months ahead, with winter heating needs and seasonal agricultural activity in both hemispheres expected to boost consumption. At the same time, conflict in the Middle East has disrupted refined-fuel shipments through the Strait of Hormuz, while Russia’s diesel export limits and attacks on its refining infrastructure are further tightening global supplies.

Robust demand is prompting US refiners to ramp up production and exports, but the additional volumes have so far been insufficient to fully offset disruptions elsewhere, keeping the refined-fuel market tight.