Heating oil futures for delivery at New York Harbor fell nearly 15% to about $3.30 per gallon on Friday, mirroring the drop in crude oil benchmarks after Iranian officials said the Strait of Hormuz remains open to all commercial vessels. The statement reinforced expectations that crude oil and refined product flows from this key region could return nearer to normal in the coming weeks, following the near halt of shipments from the Persian Gulf since the conflict began in March.
Even so, US President Trump indicated that Iranian tankers will remain subject to a blockade in the near term, pending a more durable resolution of the conflict. Earlier, the shortage of feedstock for diesel refiners had pushed heating oil futures above $4.70 per gallon in late March, putting them at a premium to the widely used biodiesel benchmarks in Asia.