FX.co ★ Heating Oil Rebounds

Heating oil futures in the U.S. have climbed past $2.08 per gallon, rebounding from their recent low of $2 per gallon on April 8th—the lowest point since August 2021. This recovery is largely driven by an increase in crude oil feedstock costs and a reduction in concerns over sluggish energy demand. The rise has also been supported by U.S. tariff exemptions on specific Chinese technology goods and a significant surge in oil imports by China. Despite these advancements, the market faces ongoing uncertainties due to lingering U.S.-China trade tensions. President Trump has been strategically adjusting tariff measures, pausing many but hinting at new tariffs on semiconductors, further contributing to market volatility. Additionally, OPEC+ has slightly lowered its global oil demand growth forecast for 2025–26 by 100,000 barrels per day to align with softer consumption predictions. The recent data from the Energy Information Administration (EIA) showing a notable decrease in U.S. distillate inventories also supports the upward trend in heating oil prices.