US heating oil futures climbed more than 5% to above $3.81 per gallon, rebounding from a five-week low of $3.624 reached on April 14, after EIA data showed a larger-than-expected draw in inventories. Distillate stocks, which include diesel and heating oil, declined by 3.1 million barrels to 111.6 million in the week ended April 10, exceeding forecasts for a 2.4 million barrel drop.
Looking ahead, forecasts indicate predominantly warmer-than-normal temperatures through April 30, a pattern that is expected to keep both heating and cooling demand relatively subdued.
On the geopolitical front, the US has maintained its naval blockade of the Strait of Hormuz. Nevertheless, sentiment has been buoyed by rising optimism over potential peace talks in the Middle East. Reports suggest the US and Iran are edging closer to a second round of negotiations and a possible extension of the ceasefire. President Donald Trump said that talks could resume within days and characterized the conflict as “close to over.”
