Heating oil prices in the US climbed nearly 6% to $3.76 per gallon, the highest level since June 3, amid mounting concerns about fuel supplies. President Donald Trump announced that the US would reinstate a naval blockade on Iran and impose a 20% reimbursement fee on all cargo transiting the Strait of Hormuz, stoking fears of disruptions to regional energy flows.
Supply risks were further underscored by setbacks to Russian energy exports. Ukraine reported strikes on an oil depot in Stavropol and on storage facilities at the port of Kavkaz. In response to repeated Ukrainian attacks and the impact of higher crude prices on refining operations, Russia said it would suspend diesel exports and shift to being a net importer.
Elsewhere, Kazakhstan’s Caspian Pipeline Consortium cut June shipments by 7%, citing maintenance at the Tengiz oilfield and reduced flows from Russia. At the same time, forecasts for warmer-than-normal weather through July 28 are expected to keep fuel demand from the power sector elevated.
