FX.co ★ Heating Oil Falls to 3-Week Low

In late May, U.S. heating oil futures experienced a decline, settling at $2.05 per gallon—the lowest point in three weeks. This decrease is attributed to the anticipation of an ample supply of crude oil, which in turn, has driven down the costs for distillate fuel producers. OPEC+ members are poised to implement a production increase of 411,000 barrels per day for July, even amidst an uncertain economic environment and a dip in Chinese demand, factors that have tempered oil consumption this year. On the supply side, the EIA reported an unexpected reduction in distillate fuel inventories for the week ending May 23rd, although it noted an increase in production of distillate fuel for the second consecutive week.