FX.co ★ US Heating Oil Futures Rise

US heating oil futures have surged to approximately $2.42 per gallon, approaching the July highs observed last week. This movement is bolstered by increasingly limited distillate supplies alongside broader energy market gains. Over the weekend, OPEC+ decided to enhance output for December but indicated a halt on further increases from January to March, considering seasonal influences. This decision has alleviated concerns about persistent oversupply, subsequently elevating energy commodities. Further reinforcing these trends, the EIA reported a significant decline in US distillate inventories by 3.36 million barrels last week—more than double the anticipated amount—representing the fourth consecutive weekly reduction. Additionally, newly imposed US sanctions on Rosneft and Lukoil, along with refinery disruptions and attacks on energy infrastructure, have hindered exports and strained diesel and gasoil supplies, pushing European gasoil crack spreads to register their highest levels in over 20 months.