23.06.202521:05:01UTC+00Heating Oil Plunges

Heating oil futures have fallen to approximately $2.32 per gallon, a decrease from the five-month peak of $2.60 recorded on June 19th. This decline has been influenced by the drop in crude oil prices and reduced geopolitical tensions, which had previously supported energy markets. The decrease in crude oil feedstock costs was sparked by Iran's restrained and non-lethal missile response to US military actions, alleviating concerns about potential supply disruptions in the Persian Gulf. Despite Iranian parliamentary threats to shut the Strait of Hormuz, oil tankers have continued operating without hindrance, easing worries about global energy supply interruptions. This significant reduction in crude oil prices has consequently put pressure on heating oil, a derivative of the same feedstock. Additionally, refining margins have been squeezed due to abundant inventories and waning summer demand, with forecasts predicting cooler-than-normal temperatures in key northeastern US markets, further limiting immediate consumption.