FX.co ★ US Heating Oil Futures Edge Up

Heating oil futures rose to $2.42 per gallon, building on the increase in crude oil prices amid escalating geopolitical tensions. President Trump announced he would expedite the deadline for Russia to agree to a ceasefire in Ukraine, warning of imposing 100% "secondary tariffs" if a deal is not reached within 10-12 days. This announcement stoked apprehensions about potential disruptions in crude supply from Russia, a significant global supplier. Despite this, market fundamentals remain weak. The Energy Information Administration (EIA) reported an unexpected increase of 2.931 million barrels in US distillate stocks last week, contrary to expectations of a reduction. The accumulation of inventories, combined with subdued seasonal demand leading up to winter, has put pressure on refiners' margins and indicates a market oversupply.