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2026.09.0701:24:10UTC+00Heating Oil Hovers Near Record Highs

US heating oil prices were trading near $4.60 per gallon, just below the record high of $4.73 reached on September 2 and nearly double their level a year earlier, amid mounting concerns over tightening supplies. According to EIA data, distillate fuel inventories increased by 796 thousand barrels in the week ended August 28, yet still stood 14% below the five-year seasonal average.

The supply shortfall comes as demand is set to climb: agricultural states are entering key harvest and planting periods, and the approaching winter heating season is expected to place additional strain on distillate markets. Reflecting these tight conditions, average US diesel prices have reached record levels.

The market remains constrained by several external pressures, including escalating tensions in the Middle East, continued disruptions to Russian refining capacity, and a prolonged Russian ban on diesel exports, all of which are further tightening global distillate supplies.

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