22.12.202515:06:14UTC+00Heating Oil Attempts to Rebound

US heating oil futures approached $2.15 per gallon, attempting a recovery from six-month lows due to escalating geopolitical tensions that have reignited supply worries and driven up the costs of crude oil feedstock. Tensions increased as US forces intervened with a tanker carrying Venezuelan crude oil and pursued another vessel, thus elevating risk premiums even though Venezuela contributes less than 1% to the global supply. Additionally, a Ukrainian drone strike on a Russian-related tanker intensified supply concerns. However, these risks were counterbalanced by significant production levels that have been suppressing prices throughout the year. This comes as OPEC+ resumed previously halted production, and non-OPEC producers, particularly across the Americas, have continued to increase output. Further weighing on prices, US distillate inventories climbed by 2.502 million barrels in the week leading up to December 5th, after a 2.059 million barrel rise the prior week, which exceeded the 1.9 million barrel forecast.