2026.02.1214:30:14UTC+00Heating Oil Eases

US heating oil futures edged down toward $2.42 per gallon after failing to hold earlier gains, as lower crude feedstock costs and softer near‑term demand outweighed an otherwise tight distillate market. Recent EIA data showed a substantial 5.6 million‑barrel draw in distillate inventories, highlighting that stocks remain relatively constrained for this point in the season. However, the decline in crude prices has reduced refiners’ input costs, removing a key pillar of price support. Elevated refinery runs are keeping product flows steady, easing concerns over any acute supply shortfalls. On the demand side, milder temperature forecasts across major US heating regions are dampening expected heating fuel consumption, while weaker natural gas prices and increased drilling activity are encouraging substitution away from fuel oil. Additional downward pressure comes from reports of a large crude inventory build and broader signals from both OPEC and the IEA that global supply could outpace demand later this year.