US heating oil futures slipped to about $4.80 per gallon after President Donald Trump moved to suspend key sanctions and tariffs on Russia, raising expectations of higher Russian diesel exports to global markets. Trump framed the decision as a step to advance peace talks with Moscow, while Secretary of State Marco Rubio said the administration would review its economic consequences over the next 60 days.
Still, supply risks remained elevated. Attacks on commercial vessels disrupted traffic through the Persian Gulf, and crude shipments fell to roughly 8.5 million barrels per day last week, down from more than 20 million barrels per day the week before, according to Kpler. Regional tensions intensified further after Egypt said it was prepared to back Saudi Arabia against Yemen’s Iran-aligned Houthi movement.
At the same time, US fundamentals continued to signal tightness. EIA data showed that US distillate stocks declined by 2.5 million barrels in the week ending October 9, leaving inventories 12% below their five-year average and underscoring ongoing supply constraints.
