U.S. heating oil futures have nudged upward to approximately $2.44 per gallon. This increase follows recent declines and is attributed to higher crude oil costs, which offset a reduced outlook for immediate demand. Warmer-than-usual weather predictions through the middle of the month continue to dampen expectations for additional heating needs, thereby limiting potential gains. Nevertheless, rising crude oil prices have pushed up distillate prices due to renewed geopolitical tensions in the Middle East. These tensions have heightened risk premiums and sparked concerns over potential supply disruptions, along with stricter enforcement of sanctions. The fundamental market factors remain favorable: U.S. crude oil inventories have seen another weekly decrease of about 3.5 million barrels, and there has been a significant reduction of approximately 5.55 million barrels in distillate stocks the previous week. This indicates robust consumption, especially noted during the recent Arctic cold wave.