Heating Oil Pulls Back

US heating oil prices fell toward $4.00 per gallon on Monday, pulling back from a more than three-month high as reports of a pause in hostilities between Iran and the US provided some relief from supply concerns. Washington has paused its bombing campaign since late Friday after nearly two weeks of strikes. A senior Iranian official said Tehran would halt attacks if the US also refrains from striking, adding that the message had already been conveyed to Washington. The pause coincided with Omani-mediated talks in Tehran on a provisional arrangement to manage shipping through the Strait of Hormuz, a move that could reduce disruptions to oil flows. Beyond the Middle East, Russian fuel supplies remained constrained, with fewer than half of the refineries damaged by Ukrainian drone strikes back in operation, leaving around 45 million tonnes of annual refining capacity offline. Forecasts of warmer-than-normal weather through August 7 could also support power-sector demand.



