Heating Oil Extends Gains

Heating oil futures in the US rose above $4.1 per gallon, moving closer to an almost six-week high, amid heightened concerns over prolonged supply disruptions in the Middle East. President Donald Trump continued to adopt a tougher stance toward Tehran as talks between Washington and Iran remained stalled, keeping the Strait of Hormuz largely shut. Concerns deepened further after reports emerged that energy facilities in the Persian Gulf were struck over the weekend. Shipments of refined fuel products from the region have been severely disrupted since the conflict began in March, tightening refinery supplies and driving heating oil futures to a record high of $4.6 per gallon. Meanwhile, recent EIA data showed US distillate fuel inventories unexpectedly rose in early May while gasoline stockpiles declined, suggesting refineries prioritized diesel and jet fuel output amid tight global transportation fuel supplies.
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