FX.co ★ Heating Oil Near 2-Month High

Heating oil futures in the US have surged past $2.43 per gallon, reaching their highest level in nearly two months. This increase is driven by heightened demand for winter fuels and a consistent rise in the cost of crude oil, marking the fifth consecutive week of gains. Contributing to this price support are predictions of an intense Arctic cold front affecting substantial regions of the United States, which has bolstered heating demand, leading to significant increases across energy markets, including natural gas. The increased consumption during winter has sustained higher distillate prices, despite constrained inventories and refining outputs limiting the usual seasonal surplus and tightening short-term product availability. Additionally, crude oil benchmarks remain robust due to continuous geopolitical and supply issues, reinforcing the strength of the feedstock for refined products. Meanwhile, a weaker US dollar has enhanced purchasing power for foreign buyers, providing further price support.