FX.co ★ US Heating Oil Futures Lowest Since August 2021

US heating oil futures dipped to approximately $1.97 per gallon, marking their lowest point since August 2021. This decline is driven by a broader downturn in energy markets, primarily due to news of increased global supply. OPEC+ has announced a second consecutive monthly production hike, adding 411,000 barrels per day in June. This amounts to more than 800,000 additional barrels per day across the months of May and June. The oil market is currently battling the dual pressures of escalating supply and concerns over demand linked to potential recession risks. April witnessed the most significant monthly oil price decline since 2021, influenced by concerns that President Trump's new tariffs might slow down economic activity. Moreover, U.S. distillate fuel stocks rose by 937,000 barrels in the week ending April 25, counteracting the previous week's sharp reduction of 2.35 million barrels. Heating oil inventories saw an increase of 252,000 barrels, reversing a slight decrease from the prior week.