Heating oil futures dropped by almost 4% toward $3 per gallon, the lowest in three weeks, after an unexpected increase in inventories rattled investors. The latest EIA data showed distillate stockpiles, which include diesel and heating oil, rose by 2.3 million barrels in the week to 117.6 million barrels, versus expectations for a 1.3 million-barrel drop. According to EIA's January projection, home heating with oil this winter will cost $2,342, down $12 from the agency's October forecast due to lower energy prices and a milder winter. The EIA had previously hiked its projection by several hundred dollars in November amid a spike in oil prices that has since receded.
Historically, Heating oil reached an all time high of 5.86 in April of 2022. Heating oil - data, forecasts, historical chart - was last updated on February of 2023.
Heating oil is expected to trade at 2.90 USD/GAL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.33 in 12 months time.