FX.co ★ Heating Oil Retreats From Monthly Highs

US heating oil futures slipped below $2.60 per gallon, pulling back from monthly highs as the relief rally following the US Supreme Court’s tariff ruling quickly turned into a “sell-the-fact” move across the energy complex. Prices softened despite a record US military buildup in the Middle East and President Trump’s 15-day ultimatum to Iran, as traders weighed the possibility of de-escalation against ongoing supply risks at the Strait of Hormuz.

The decline came in spite of a bullish EIA report showing a sharp 4.57 million-barrel draw in distillate inventories and a 9 million-barrel drop in crude stocks, indicating that macro-driven profit-taking outweighed an increasingly tight physical market. Although a cold snap is forecast for the US Northeast this weekend, near-term price action reflects a tug-of-war between geopolitical risk and shifting sentiment around trade policy. With the February deadline for Iran looming, market participants remain nervous, keeping volatility elevated even as prices probe lower technical support levels.