Heating Oil Falls to Near 2-1/2-Year Low
US heating oil futures dipped below $2.3 per gallon, marking their lowest level since December 2021, tracking oil’s sharp decline. WTI crude oil futures dropped to a four-month low after OPEC+ announced plans to gradually ease production cuts. Additionally, concerns over prolonged high interest rates by the US Federal Reserve further pressured oil prices amid fears of reduced economic growth and lower demand. Meanwhile, distillate fuel product supplied, a key demand indicator for traders, decreased by 88 thousand barrels in the week ending May 24th, consistent with the IEA's downward revision of energy demand growth forecasts linked to mild weather in Europe. On the supply side, distillate stocks surged by 2.544 million barrels in the same week, surpassing expectations of a 0.15 million barrel build, according to the latest EIA report, further impacting heating oil prices.