2025.10.0815:09:02UTC+00Heating Oil Extends Rebound

Heating oil futures in the United States surged past $2.28 per gallon, bouncing back from an 11-week low of $2.24 on October 3rd. This upward movement was driven by a focused tightening within the distillate sector and rising costs of crude oil feedstock. Recent data revealed a drawdown of approximately 2 million barrels in distillate stocks for the week leading to October 3rd, further depleting an already minimal inventory buffer and reducing immediate supply availability. Concurrently, scheduled maintenance and unexpected outages led to a reduction of about 1–1.2 million barrels per day in refining capacity, impacting product output just as the October–March heating season commenced. These factors combined to contract the available distillate supply, elevate diesel and heating oil crack spreads, and enhance refinery margins. Additionally, with crude oil prices finding support after OPEC+ indicated only a slight increase in production for November, the upward pressure on prices intensified.