Heating oil futures eased toward $2.55 per gallon, down from a five-month high of $2.60 seen June 19th, after President Trump’s announcement that he will defer any US intervention in the Israel–Iran conflict for up to two weeks defused the immediacy of a Middle East supply shock. Nevertheless, underlying fundamentals remain firmly supportive.
Ultra-low-sulfur diesel futures, which mirror heating oil’s distillate feedstock, remain elevated on fears that strikes in Tehran could choke Hormuz flows and curb Gulf exports, while US crude stocks plunged 11.5 million barrels in the week to June 13th—the largest draw in a year—and refiners ran near capacity to meet diesel, marine-fuel and summer-blend demand, leaving scant spare product. War-risk surcharges on tanker freight and insurance, coupled with high feedstock costs and the threat of further escalation, sustain speculative interest and limit any further decline in heating oil prices.
