Heating Oil Rises for Third Session

US heating oil futures rose above $3.70 per gallon in early June, advancing for a third consecutive session, as reports of fresh hostilities in the Middle East dashed hopes of a breakthrough in US–Iran negotiations. Both countries carried out new strikes, even as President Donald Trump said Washington remained in talks with Iran on a possible deal to end the conflict, pushing back against Iranian media claims that communications had collapsed. Conflicting reports and ongoing strikes have kept markets on edge, driving volatility in energy commodities. Distillate exports from the region have been significantly disrupted since the conflict began in March, straining refinery operations and pushing heating oil futures to a record $4.60 per gallon that month. Against this backdrop, industry data showed that diesel and heating oil inventories fell by 214 thousand barrels in the final week of May.