Commodities Heating Oil Eases
US heating oil futures slipped toward $2.42 per gallon after failing to sustain gains, as easing crude feedstock costs and softer near-term demand outweighed an otherwise tight distillate balance. Although recent EIA data showed a sizable 5.6 million barrel draw in distillate inventories, underscoring that stocks remain relatively constrained for this stage of the season, falling crude prices have reduced refiners’ input costs and removed a key source of price support. Elevated refinery runs continue to maintain steady product flows, limiting fears of acute supply shortages. On the demand side, milder temperature forecasts across major US heating regions are curbing expected heating consumption, while weaker natural gas prices and increased drilling activity are encouraging substitution away from fuel oil. Additional pressure stems from reports of a large crude stock build and broader signals from OPEC and the IEA that global supply could outpace demand later this year.
