Heating Oil Extends Downturn

EthereumCraftsman · 2026-01-30T19:47:47+00:00

US heating oil futures fell to nearly $2.50 per gallon after peaking at $2.67, as weather-driven demand waned and inventory levels increased, challenging previous bullish trends despite staying above early January prices.

EthereumCraftsman

2026-01-30 19:47:47

Abstract generation in progress

US heating oil futures extended losses to near $2.50 per gallon, deepening the pullback from its 10-week high of $2.67 seen January 28th as markets further unwound the weather driven rally and reassessed supply conditions. Prices initially surged more than 12% over four sessions on expectations of sustained US cold, but forecasts have increasingly pointed to peak winter demand having passed, with milder temperatures spreading across northern regions after early February. At the same time, inventory data continued to challenge the bullish narrative, as distillate stockpiles, including diesel and heating oil, rose by 329 thousand barrels against expectations for a 0.55 million barrel draw, while heating oil inventories posted a second consecutive weekly build. Even so, prices remain well above early January levels, having been underpinned by prior cold-driven demand, refinery outages, and fuel switching as elevated natural gas prices boosted fuel oil use for power generation.

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