FX.co ★ US Heating Oil Futures Rise to 3-Week High

Heating oil futures in the United States surged to $2.13 per gallon, marking a three-week high, buoyed by gains across the broader energy sector. Positive sentiment was driven by the potential for renewed US-China trade negotiations. Officials from both nations are slated to engage in fresh discussions in London after a recent call between President Trump and President Xi, fueling hope for reduced tariff tensions that might bolster global oil demand. Meanwhile, in Canada, wildfires led to a temporary reduction of approximately 7% in oil production, although recent rainfall has allowed some operations to resume. On the supply side, data from the Energy Information Administration (EIA) revealed that US distillate fuel inventories increased by 4.2 million barrels for the week ending May 30, nearly doubling expectations and partially mitigating upward price pressures. Looking forward, weather forecasts suggest warmer-than-usual conditions continuing into mid-June.