FX.co ★ Heating Oil Falls to 2-Week Low

Heating oil futures for delivery at New York Harbor fell more than 3% to about $3.70 per gallon, a two-week low, as growing optimism over a potential US-Iran agreement fueled expectations of a gradual normalization in Middle Eastern energy exports. President Trump said talks were progressing constructively but stressed that the US would not rush to finalize a deal. He added that the reopening of the Strait of Hormuz was largely agreed upon and could be announced soon, though the US blockade would remain in place until negotiations are fully completed. Distillate exports from the region have been largely suspended since the war began in March, straining refinery operations and driving heating oil futures to a record high of $4.60 that month. At the same time, US distillate inventories unexpectedly increased in mid-May, in contrast with a decline in gasoline stocks, indicating that refiners shifted output toward diesel and jet fuel in response to global transportation fuel shortages.