FX.co ★ US Heating Oil Futures Join Energy Rally

Heating oil futures have surged past $2.55 per gallon, influenced by escalating geopolitical tensions and strong demand for fuel. Market participants are closely monitoring Tehran's potential response following the U.S. military's recent strikes on Iranian nuclear facilities, heightening concerns about possible disruptions in the Strait of Hormuz—a vital channel for the global flow of crude oil and natural gas. Although Iran has not yet retaliated, its officials have vowed "everlasting consequences" as Israel continues to target Iranian military positions. Contributing to the upward trend, U.S. crude oil inventories experienced a significant reduction of 11.5 million barrels in the week ending June 13, marking the largest drawdown in a year. This occurred as refineries operated at nearly full capacity to satisfy increasing demands for diesel, marine fuel, and seasonal blends. Simultaneously, predictions of a severe U.S. heatwave are fueling expectations of unprecedented power consumption, further tightening the refined fuel market.