FX.co ★ Heating Oil Holds its Rebound

US heating oil futures have stabilized around $2.35 per gallon, maintaining a level above the one-month low as the elevated costs of crude oil feedstock counterbalance a slightly less pessimistic distillate outlook ahead of peak winter demand. Crude oil prices reached one-week highs after OPEC+ confirmed its decision to halt planned production increases for the first quarter of the coming year. This strategic move bolsters the crude oil market despite regional refining and demand dynamics exerting downward pressure on heating oil prices. Concurrently, recent inventory figures weaken projections of a significant winter supply shortfall, with distillate stocks increasing by approximately 1.15 million barrels in the week ending November 21st, surpassing forecasts of around 0.6 million barrels and following a 0.17 million barrel rise the previous week after six consecutive declines.