FX.co ★ Heating Oil Rises to Over 2-Month High

U.S. heating oil futures surged by over 3% to approximately $2.51 per gallon, marking a peak not seen in over two months. This increase is primarily driven by heightened demand for heating oil following an intense winter storm. The robust energy consumption has significantly bolstered distillate prices, particularly as current inventories remain thin and refinery operations face limitations, diminishing the typical seasonal cushion and tightening the short-term availability of products. Concurrently, crude oil benchmarks have remained resilient due to ongoing geopolitical tensions and supply issues, thereby strengthening the raw materials needed for refined products. Furthermore, the weakening of the U.S. dollar has provided additional support, as it renders dollar-priced commodities more affordable for purchasers using other currencies.