Heating Oil Plunges from 1-Month High After EIA

Heating oil futures fell toward $2.3 per gallon, retreating from the one-month high of $2.37 seen September 2nd amid increased US distillate and heating oil inventories, along with a broader decline in crude oil feedstock costs. According to the latest US EIA report, distillate stocks increased by 1.68 million barrels in the week ending August 29th, reversing the previous week's draw of 1.79 million barrels and way above the expected 0.5 million barrel draw. Similarly, heating oil inventories rose by 557 thousand barrels during the same period, compared to a modest increase of 102 thousand barrels the week before. Concurrently, crude oil prices have declined due to rising global production and expectations of further output increases from OPEC+ members, leading to concerns about an oversupplied market.