US heating oil prices slipped to about $4.51 per gallon after President Donald Trump signed an executive order expanding access to tax-exempt diesel, his latest move to ease diesel costs. The order suspends the off-road-use restriction for red-dyed diesel, allowing it to be purchased tax-free for any purpose. In addition, the G7 pledged last week to release 100 million barrels of diesel from strategic emergency reserves, though the actual volume of net new supply remains uncertain.
Even so, heating oil prices stayed close to the mid-September record of $5.20 per gallon, reflecting ongoing tightness in refined product markets. EIA data showed US distillate inventories at historically low levels, and refinery maintenance together with seasonal demand is expected to keep supplies constrained. Global availability of diesel is being further tightened by disruptions in the Middle East and Russia, Moscow’s extended restrictions on diesel exports, and China’s suspension of fuel exports for October.
