Heating oil prices in the US remained below $4.80 per gallon, declining for a third straight session amid expectations of higher Russian diesel exports. US Energy Secretary Chris Wright indicated that Washington could allow additional Russian diesel into global markets, contingent on Moscow’s behavior. This followed reports of a US–Russia understanding to resume diesel shipments, alongside indications that Russian refineries raised throughput by roughly 25% in the second half of October.
The US also plans to release up to 315,000 barrels from its Northeast Home Heating Oil Reserve. Even so, supply risks stayed elevated after Yemen’s Iran-aligned Houthi movement claimed a missile strike on Saudi Arabia’s largest oil refinery, and as reports surfaced that Washington had warned Gulf states to brace for a potential post–midterm military campaign against Iran. US distillate inventories remained comparatively tight, at about 9% below their five-year seasonal average in the week ended October 16.
