FX.co ★ Heating Oil Hits Almost Two-Year High

US heating oil futures climbed above $2.70 per gallon, their highest level since April 2024, as a powerful winter storm sweeping across the Northeast drove expectations for stronger near-term heating demand. The storm, considered the most intense in a decade, disrupted travel, forced the closure of schools and businesses, and kept millions of people indoors.

Although snowfall has begun to ease in parts of the region, the National Weather Service warned that another system is likely to bring additional snow later this week. At the same time, investors are closely monitoring a new round of US–Iran negotiations, with Trump expressing support for reaching a deal while cautioning that there will be serious consequences if talks fail.

Heightened concerns over tensions in the Middle East and potential supply disruptions have further underpinned heating oil prices. Supporting the bullish tone, last week’s EIA data showed a 4.6 million-barrel decline in distillate inventories, significantly larger than the expected 1.4 million-barrel draw.