Heating Oil Futures Rebound
Heating oil futures for delivery at the New York Harbor climbed toward $4.0 per gallon, extending their rebound from a two-week low, as renewed attacks in the Middle East reinforced concerns over deeper energy disruptions in the region. The US and Iran exchanged fire in the Strait of Hormuz, with both sides accusing the other of initiating the confrontation, putting a month-long ceasefire in doubt. Oil and refined fuel shipments through the Strait have been severely disrupted since the war began in March, putting pressure on refineries and pushing heating oil futures to a record high of $4.6 in March. In response, refineries across Europe and Asia have adjusted operations to produce more diesel and jet fuel at the expense of gasoline output. Even so, fuel shortages forced major European airlines to cancel thousands of flights, while tightening supplies in Asia prompted China to resume diesel exports.