Heating Oil Futures Fall Further

US heating oil futures extended their decline, dropping below $4.0 per gallon, after indications of a potential US-Iran peace agreement. President Donald Trump stated that operations to escort stranded ships out of the Strait of Hormuz would be temporarily paused to allow time to finalize a deal with Iran, but added that the blockade of Iranian ports would remain in place. His comments followed Secretary of State Marco Rubio’s assurance that the Middle East ceasefire is still holding and that the initial major US military operation against Iran has ended. Iran also denied carrying out attacks against the UAE, but warned of a “decisive response” if Abu Dhabi launches strikes on its territory. Meanwhile, weather forecasts have shifted slightly warmer as the market transitions toward the summer cooling season, although below-average temperatures are still expected across parts of the US Midwest in the near term.

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