FX.co ★ US Heating Oil Futures Rebound

U.S. heating oil futures climbed over 1%, reaching approximately $2.23 per gallon, as the market recovered from an eight-week low. This uptick came in the wake of President Donald Trump's more conciliatory approach toward China, just two days after he had threatened new tariffs. These comments had included a warning about imposing an additional 100% tariff on Chinese goods starting November 1, which had stoked fears of an intensifying trade war capable of negatively impacting global growth and energy demand. Lending further support to the market, OPEC+ revealed a less-than-anticipated increase in output. The latest projections from the EIA suggested that U.S. distillate inventories will stay below average through 2026, due in part to robust export demand, decreased refining capacity, and significant stock drawdowns earlier in the year. During the first half of 2025, inventories fell by 17%, equating to around 22 million barrels.