FX.co ★ Heating Oil Holds its Rebound

Heating oil futures in the United States have stabilized around $2.10 per gallon, bouncing back from a three-week low of approximately $2.00 reached on May 30th. This recovery aligns with broader energy market movements. OPEC+ recently announced an increase in output for July, adding 411,000 barrels per day, following similar production hikes in May and June. In Canada, wildfires temporarily disrupted about 7% of the country's oil production; however, recent rainfall has enabled at least one operator to resume activities at a previously closed site. Geopolitically, attention remains on potential trade developments as discussions are anticipated this week between President Trump and President Xi Jinping. Meanwhile, on the supply side, data from the Energy Information Administration (EIA) indicated that US distillate fuel inventories rose by 4.2 million barrels for the week ending May 30, nearly doubling expectations and somewhat mitigating upward pressure on prices.