Heating Oil Extends Gains

Heating oil futures edged above $3.70 per barrel, extending a two-day gain, as US–Iran peace talks faltered and President Trump maintained a blockade of the Strait of Hormuz despite extending a ceasefire with Iran. Trump said the truce would continue until Iran submits a “unified proposal” to end the war with the US and Israel.

The move followed reports that Vice President JD Vance’s planned trip to Pakistan for talks with Iranian officials was postponed, while Iranian state media said Tehran had informed US counterparts via a Pakistani intermediary that it would not attend further talks. Since the conflict with Iran began in late February, crude and refined product flows from the Persian Gulf have fallen by about 13 million bpd, according to IEA. Meanwhile, API data showed distillate stockpiles, which include diesel and heating oil, decreased by 3.40 million barrels last week. Elsewhere, warmer-than-normal temperatures through April 30 could also weigh on heating and cooling demand.