US Heating Oil Futures Rebound from 11-Week Low

US heating oil futures climbed to $2.28 per gallon, rebounding from an 11-week low of $2.24 on October 3, amid persistent concerns over tight distillate supplies ahead of winter and a smaller-than-expected OPEC+ production hike.

The group agreed to raise output by just 137,000 barrels per day in November, far below market forecasts.

Meanwhile, the EIA’s latest outlook indicated that US distillate inventories will stay below average through 2026, pressured by strong exports, refinery closures, and significant stock draws earlier this year.

Inventories fell by 17%, or about 22 million barrels, in the first half of 2025.

Demand for distillate fuel oil rose 5% as renewable diesel and biodiesel output slumped 35% year-on-year.

Looking ahead, further refinery closures in Houston and California are likely to keep supply tight well into 2026.