22.09.202600:56:03UTC+00Heating Oil Retreats Further

US heating oil prices fell below $4.90 per gallon, extending their pullback from last week’s record high as improved tanker traffic through the Strait of Hormuz and renewed diplomatic efforts eased immediate supply fears. Satellite data indicated a sharp increase in Saudi oil loadings in the Persian Gulf, signaling that exports have been redirected back through the Strait of Hormuz while the East–West pipeline remains offline. Reports suggest that the pipeline could partially resume operations within days.

Even so, seasonal dynamics point to renewed upward pressure. With winter approaching, heating demand is likely to rise, while ongoing refinery maintenance could limit output and tighten already constrained supplies. According to EIA data, distillate inventories—including diesel and heating oil—were 13% below their five-year average in the week ending September 11. At the same time, Russia intends to extend diesel export restrictions through October, and Ukrainian strikes have disrupted production at key refineries, further constricting global distillate availability.