FX.co ★ Heating Oil Tracks Crude Lower

U.S. heating-oil futures have plummeted to approximately $2.12 per gallon, edging close to the nearly three-year low of $2.00 recorded on April 8th. This decline comes as feedstock expenses have decreased amid renewed uncertainties surrounding U.S.–China trade negotiations. Treasury Secretary Scott Bessent's recurring comment, “up to China,” highlights the current standstill and escalating concerns about potential oversupply. In response, Barclays analysts have reduced their 2025 Brent oil price forecast by $4, bringing it to $70. OPEC+ members are suggesting the possibility of increasing output at their May 5th meeting, adding to Kazakhstan's defiance of production agreements and the potential influx of Iranian oil if nuclear sanctions are relaxed.