FX.co ★ Heating Oil Rebounds From Mid-2021 Lows

U.S. heating oil futures have experienced a notable increase, rising over 5% to surpass $2.10 per gallon. This recovery follows a previous low of $2 per gallon, marking the lowest level since August 2021, recorded on April 8th. The upswing correlates with a wider recovery across the energy market. Renewed optimism in the sector has been spurred by President Trump's decision to temporarily suspend reciprocal tariffs for most nations for 90 days, a measure that has alleviated trade tensions and mitigated pressures on energy markets. Although China remains exempt from this suspension—with tariffs on its exports elevated to 125% in response to its recent countermeasures—the general de-escalation of trade conflicts has contributed to stabilizing market concerns. Additionally, a significant reduction of 3.54 million barrels in U.S. distillate inventories has supported price increases by indicating tighter supply, while expectations of heightened demand have further reinforced this recovery.