FX.co ★ Heating Oil Rises for Third Session

US heating oil futures climbed above $3.70 per gallon in early June, marking a third straight session of gains, as renewed hostilities in the Middle East dampened hopes for a breakthrough in US–Iran negotiations. Both countries conducted fresh strikes, even as President Donald Trump maintained that Washington was still engaged in talks with Tehran on a potential agreement to end the conflict, countering Iranian media reports that communications had broken down. The combination of conflicting reports and continued military action has kept markets unsettled, fueling volatility across energy commodities. Since the conflict erupted in March, distillate exports from the region have been heavily disrupted, putting pressure on refinery operations and driving heating oil futures to a record high of $4.60 per gallon that month. In this context, industry data showed that diesel and heating oil inventories declined by 214 thousand barrels in the final week of May.