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23.09.202601:35:56UTC+00Heating Oil Falls to 2-Week Low

US heating oil prices slipped below $4.90 per gallon, their lowest level in two weeks, as recovering oil flows from the Middle East and signs of diplomatic progress eased immediate supply fears. Saudi Arabia has restarted its East–West pipeline at a reduced rate following a drone-related shutdown, with exports from Yanbu expected to resume. However, full throughput is not expected for another six to eight weeks while repairs continue.

At the same time, Iran signaled it could reopen the Strait of Hormuz within a week if the US reduces military pressure and lifts its blockade, while President Trump described recent US–Iranian talks as “very productive.”

Despite the improved supply outlook, heating oil demand is likely to strengthen as winter approaches, and seasonal refinery maintenance could limit distillate output. Adding to the tightness in global distillate markets, Russia plans to extend its diesel export restrictions through October. Industry data also showed that US distillate inventories fell by 2.2 million barrels in the week ended September 18.

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