FX.co ★ US Heating Oil Rebounds from 5-Week Low

US heating oil futures climbed back above $4.30 per gallon, rebounding from a five-week low of $4.20 hit on November 4, as tight supplies and geopolitical risks supported prices. The Democrats’ victory in both chambers of Congress is expected to increase their influence over federal spending and potentially limit President Donald Trump’s scope to escalate conflict with Iran, though any diplomatic breakthrough remains elusive. Supply concerns were heightened by EIA data showing that US distillate inventories—which include diesel and heating oil—fell by 3.6 million barrels in the week ended October 30, pushing stockpiles to 13% below the five-year average and to a record low for this time of year. At the same time, Iran reported that one of its tankers struck a mine in the Strait of Hormuz, while talks with Oman are underway to restore normal shipping operations. Adding further upward pressure, Russia plans to extend its diesel export ban through January 2027, albeit with some exemptions still in place.