11.12.202516:03:40UTC+00Heating Slides to 7-Week Lows

U.S. heating oil futures have declined to below $2.22 per gallon, hitting a seven-week low due to an anticipated global surplus of crude oil. This situation arises from increased output by OPEC+ members and producers in the Americas, alongside a faster-than-expected rise in distillate inventories. Although the International Energy Agency has revised its forecast, suggesting a slightly reduced surplus, it still predicts significant oversupply this winter, thereby maintaining downward pressure on prices. Additionally, mild weather conditions expected up to December 23 have decreased immediate heating demand in key consumer areas, while sufficient storage capacity continues to keep the physical market supplied. Contributing further to the downtrend, U.S. distillate stocks increased by 2.502 million barrels for the week ending December 5, following a 2.059 million barrel rise the previous week, surpassing the anticipated 1.9 million barrels and heightening concerns over product oversupply, thus exerting further pressure on prices.