U.S. heating oil futures climbed back above $2.43 per gallon, to a nearly two-month high tracking higher crude oil feedstock costs which have extended gains for a fifth consecutive week, driven by intensifying geopolitical risk and fresh supply concerns. Oil benchmarks strengthened after President Trump warned of possible military action against Iran, with US warships including an aircraft carrier and guided missile destroyers set to deploy to the Middle East, reviving fears of disruption to regional oil flows. Supply risks were further reinforced by continued outages in Kazakhstan, where production at the giant Tengiz field remains offline, tightening near term export availability. A weaker US dollar added support by improving affordability for non US buyers. Alongside higher feedstock costs, heating oil also drew incremental demand support from forecasts of a severe Arctic blast across large parts of the US, which is expected to lift winter heating consumption.
