US heating oil futures slipped below $4.70 per gallon, falling for a third straight session to a two-week low, amid ongoing uncertainty over potential US diesel export restrictions. The White House rejected reports of a planned 90-day export ban, and Energy Secretary Chris Wright indicated the administration was instead pursuing voluntary limits with major refiners. Even so, earlier comments from President Donald Trump expressing support for restricting diesel exports left the policy outlook unclear.
At the same time, tentative diplomatic openings between the US and Iran helped ease some supply concerns, with negotiators reportedly considering a phased plan to end the conflict that would include reopening the Strait of Hormuz and lifting Washington’s economic blockade of Iran. Nonetheless, continued attacks across the Middle East undermined prospects for a broader de-escalation.
Separately, the onset of the winter heating season is expected to bolster demand and could further tighten supplies, with distillate inventories already about 12% below the five-year average, according to the EIA.
