02.02.202610:07:33UTC+00US Heating Oil Futures Ease from 10-Week High

U.S. heating oil futures saw a decline of over 4%, settling at approximately $2.42 per gallon, as they retreated from the ten-week peak of $2.65 reached on January 27. This decrease occurred amidst forecasts predicting milder weather, which alleviated immediate concerns regarding demand. The projections indicate higher-than-average temperatures across significant portions of the U.S. through the middle of the month, which could decrease heating requirements, despite persistent cold spells in some southern regions. Additionally, inventory data influenced prices, as distillate stockpiles increased by 329 thousand barrels for the week ending January 23, contrary to expectations of a reduction. Heating oil inventories recorded a second consecutive weekly increase. Nonetheless, prices remain considerably above early January levels, buoyed previously by cold weather-induced demand, disruptions in refineries, and a shift in fuel usage as elevated natural gas prices pushed certain power generators to opt for fuel oil instead.