FX.co ★ Heating Oil Halts Selloff

U.S. heating oil futures have stabilized near $2.33 per gallon, halting their recent decline to one-month lows. This price steadiness comes as traders consider the uncertain oil supply against a more optimistic distillate outlook ahead of the peak winter season. An envoy from the U.S. presidency is scheduled to visit Russia next week, with any potential diplomatic progress possibly leading to relaxed sanctions on Russian oil. However, most analysts remain skeptical about a swift resolution or a rapid increase in Russian oil exports. Attention is also focused on an upcoming OPEC+ meeting this weekend, particularly since the group recently decided to suspend planned output increases for the first quarter of the coming year. New inventory data has further downplayed concerns of a severe winter shortage, as distillate stocks increased by approximately 1.15 million barrels in the week ending November 21, surpassing predictions of about 0.6 million barrels and following a 0.17 million barrel rise the previous week after six straight weeks of stock draws. Meanwhile, demand received limited support as NOAA reports indicate only isolated areas experiencing below-normal temperatures into early December.