Heating Oil Prices Decline

US heating oil prices fell toward $3.10 per gallon in June, not far from the three-month low reached on June 18, as markets tracked a fast-changing US–Iran peace talk narrative. Both parties agreed on a 60-day roadmap toward a final deal, with technical talks set to continue through the rest of the week, according to a statement from mediators Qatar and Pakistan in Switzerland. Still, doubts over the viability of the agreement persisted after local media earlier reported that Iran suspended talks following President Donald Trump’s renewed threats of strikes should Hezbollah continue attacking Israel. The evolving developments have left markets assessing how quickly oil shipping through the Strait of Hormuz could return to normal, which has been largely constrained since March. Meanwhile, US distillate inventories, which include diesel and heating oil, increased by 0.951 million barrels in mid-June.