06.08.202515:10:57UTC+00Heating Oil Rebounds After EIA Data

In early August, heating oil futures hovered around $2.30 per gallon, recovering slightly from their early-June lows of $2.25. This uptick followed an unexpected drop in US distillate inventories by 565,000 barrels for the week ending August 1st, providing some relief from the prior oversupply despite refinery operations remaining near peak levels. Market participants are also considering the potential for India to reduce its Russian oil imports in response to anticipated US tariff threats, which could lead to a tightening of global supply. Nonetheless, overall stock levels remain significantly above the five-year seasonal averages due to previous substantial builds exceeding three million barrels. Meanwhile, intense summer heat has not spurred an increase in demand, and broader economic indicators, such as slow job creation and shrinking factory output, suggest continued subdued consumption. Consequently, prices remain close to their recent lows.