US heating oil futures fell toward $2.40 per gallon in May, marking an over 10-month low as the demand outlook for energy dampened while supplies remained robust. Hotter-than-expected US private sector growth, as indicated by flash PMIs, along with hints from recent Federal Reserve minutes about tightening policy in response to inflation spikes, raised concerns about prolonged elevated interest rates. This raised worries about reduced energy demand from the world's largest oil consumer. Additionally, the IEA's downward revision of energy demand growth forecast, attributed to mild weather in Europe, exerted further pressure on heating oil prices. On the supply side, the latest EIA report showed that heating oil stocks rose by 477 thousand barrels in the week ending May 17th, while distillate fuel stocks rose by 379 thousand barrels, contradicting market expectations of a 39 thousand draw.
Heating Oil decreased 0.08 USD/GAL or 3.23% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. 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 25 of 2024.
Heating Oil decreased 0.08 USD/GAL or 3.23% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Heating oil is expected to trade at 2.45 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 2.54 in 12 months time.