16.12.202515:05:26UTC+00Heating Oil Falls to 6-Month Lows

U.S. heating oil futures have dipped below $2.15 per gallon, reaching six-month lows, as the market adjusts to an expanding global crude oil surplus. This shift comes amid easing concerns over Russian supply interruptions and increased output from OPEC+ and producers within the Americas. Meanwhile, distillate inventories are increasing more rapidly than anticipated. The potential resolution of the conflict in Ukraine has heightened expectations of reduced restrictions on Russian oil exports, thereby minimizing supply risks in a market that is already well-supplied. Throughout the year, elevated production levels have exerted downward pressure on prices. OPEC+ has been reinstating previously halted production, while non-OPEC countries, notably in the Americas, have continued to boost their output. On the demand front, weaker economic indicators from China have created uncertainty about future consumption trends. Additionally, U.S. distillate inventories rose by 2.502 million barrels in the week ending December 5th, following a previous increase of 2.059 million barrels, surpassing the forecasted 1.9 million barrels.