2026.01.2815:58:15UTC+00Heating Oil Holds to Gains After EIA

Heating oil futures in the United States remained above $2.66 per gallon, hovering near highs seen in late November, as recent gains were solidified by robust winter demand countered by mixed signals from inventory data. The demand for heating continued to rise due to an Arctic blast covering much of the country, which also tightened short-term supply because of reduced refinery activity and disruptions caused by the cold weather. The energy market overall received a boost after U.S. crude oil inventories unexpectedly decreased by 2.296 million barrels in the week ending January 23, which included a reduction of 278,000 barrels at Cushing, further strengthening the supply outlook. However, the potential for prices to increase further has been limited due to a rise in distillate inventories by 329,000 barrels, contrary to expectations of a decrease, thus alleviating short-term supply concerns for heating oil. Additionally, forecasts from NOAA suggesting milder temperatures from early February have led the market into a phase of consolidation, curbing the possibility of further immediate gains.