Heating Oil Extends Rebound
Heating oil futures in the US have rose above $2.3 per gallon from the three-month low of $2.16 touched on March 13th, driven by a continued drawdown in inventories and rising feedstock costs. Recent EIA data shows that U.S. distillate stocks fell by 421 thousand barrels in the week ending March 21th, following a 2.8-million-barrel drop the previous week, while heating oil stocks declined by 35 thousand barrels. Simultaneously, crude oil prices have reached a nearly four-week high amid tightening global supply, which has increased input costs for refineries, especially those relying on sour crude imports from Canada. Tariffs imposed on Canadian crude further add to these elevated feedstock costs, supporting the recent surge in heating oil prices.