FX.co ★ Heating Oil at 1-Month High

In April, heating oil futures in the United States surged to nearly $2.30 per gallon, marking a one-month peak driven by persistently high crude oil costs, despite ample supply due to seasonal dips in heating demand in critical areas such as Europe and North America. Oil prices hovered near six-week highs as market participants anticipated intensifying trade disruptions that could potentially squeeze global supply chains and elevate refinery expenses. Contrasting these price dynamics, the latest EIA (Energy Information Administration) report revealed a 0.264 million barrel increase in distillate stockpiles, defying expectations of a 1.1 million barrel decline. Additionally, heating oil inventories rose by 0.21 million barrels. This scenario unfolds amid the retreating winter season and milder temperatures, which have significantly reduced both residential and industrial heating requirements. Furthermore, forecasts of above-average warmth through mid-April are likely to suppress demand further, alleviating pressure on storage capacities.