US heating oil futures climbed to about $5 per gallon, approaching the record high reached in mid-September, after industry data pointed to a drawdown in inventories. API figures indicated that US distillate stocks fell by 2.6 million barrels in the week ending October 16, highlighting persistently tight supply conditions.
Supply concerns were further amplified by geopolitical tensions in the Middle East. Attacks on oil tankers near the Strait of Hormuz intensified fears of shipping disruptions, while Houthi strikes on Saudi energy infrastructure stoked worries over additional supply losses. Even so, Gulf oil shipments proved more resilient than many had anticipated, with exports surpassing pre-war levels in mid-October.
At the same time, traders continued to assess the potential impact of increased Russian fuel exports after President Trump waived newly imposed Russia-related sanctions and tariffs. Secretary of State Marco Rubio noted that the administration could take up to 60 days to evaluate their economic effects, leaving markets uncertain over whether the policy shift would ultimately ease fuel supply pressures.
