US heating oil prices slipped to about $4.60 per gallon after President Donald Trump signaled he was less likely to curb diesel exports, easing fears that new restrictions could reignite a spike in fuel costs. At the same time, the European Union is weighing a coordinated response following a US request that Germany and France tap their emergency diesel reserves, with officials suggesting that additional European supply could come to market.
Even after the pullback, prices remain near the record high of $5.20 per gallon set in mid-September. Refined-product markets are still under strain, despite Middle Eastern crude exports returning to roughly pre-war levels. Supply has been constrained by disruptions in the Persian Gulf, Ukrainian strikes on Russian refineries, and Moscow’s decision to extend its diesel-export restrictions through October. China has also scrapped some planned October fuel shipments to prioritize domestic needs. In the US, EIA data show distillate inventories at their lowest seasonal level on record.
