Heating Oil Hits 3-Week High

US heating oil prices rose above $3.30 per gallon, reaching a three-week high, as concerns over distillate supplies outweighed weakness in crude oil. Markets remained focused on Russia, where Ukrainian drone strikes continued to disrupt refinery operations. The latest attack targeted Russia’s largest oil refinery in Omsk in one of Ukraine’s longest-range strikes of the war, heightening concerns over refined fuel supplies and fueling speculation that Moscow could impose a diesel export ban to ease domestic shortages. With Russian refinery runs near multi-year lows and global distillate inventories still tight, any reduction in diesel exports was expected to keep refining margins elevated. The advance came even as benchmark crude prices remained subdued amid higher OPEC+ output and recovering oil and gas shipments through the US-secured corridor in the Strait of Hormuz, allowing major Persian Gulf producers to increase exports.