Heating oil futures traded below $4 a gallon, but remained not far from record levels seen at above $4.3 in March as traders assessed downside risks to oil demand and tight supplies. According to the EIA, domestic inventories of distillate fuels, which include heating oil and substitutes, shrank for the fifth time in a row in the week ending May 6th. Current levels are the lowest in 17 years, as refining capacity remained below pre-pandemic levels, and higher domestic and overseas demand drained stocks. Additionally, prospects that the EU could soon approve a Russian oil embargo strengthened the outlook for US heating oil exports.
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 May of 2022.
Heating oil is expected to trade at 4.07 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 4.55 in 12 months time.