Heating Oil Futures Hold Above $3.60

US heating oil futures traded above $3.60 per gallon in early June, holding most of their recent losses, as doubts over US–Iran negotiations raised fears of prolonged energy supply disruptions from the Middle East. Reports indicated that Iran had suspended indirect negotiations with Washington over Israel’s operations in Lebanon, contrasting with President Donald Trump’s statement that talks with the US were still ongoing. The differing accounts have kept markets on edge and energy commodities volatile. Distillate exports from the region have been significantly disrupted since the conflict began in March, straining refinery operations and driving heating oil futures to a record $4.60 per gallon that month. Reflecting continued supply tightness, US distillate inventories, including diesel and heating oil, fell by more than 2.0 million barrels in the week ended May 22, larger than expectations for a 1 million-barrel draw.
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