2026.03.2603:06:54UTC+00Heating Oil Futures Move Higher

US heating oil futures climbed back above $4 per gallon on Thursday, partially retracing the prior session’s losses, as traders weighed mixed signals from Washington and Tehran over a possible end to the conflict. Iran stated it has no intention of entering direct negotiations with the United States, stressing that any mediated exchanges do not amount to formal talks. The White House, by contrast, insists that peace efforts are continuing, while warning that military action could escalate if Iran does not acknowledge its setbacks.

At the same time, distillate inventories—which include diesel and heating oil—rose by 3.0 million barrels in the week ending March 20, sharply defying analysts’ expectations for a 1.3 million-barrel draw and reversing the previous week’s decline. Energy markets have remained highly volatile since the conflict began, with heating oil prices surging more than 50% this month amid supply disruptions in the Strait of Hormuz.