US heating oil futures rose over 1% to around $2.23 per gallon, rebounding from an eight-week low, after President Donald Trump struck a more conciliatory tone toward China just two days after threatening new tariffs. His remarks followed a warning of an additional 100% tariff on Chinese goods starting November 1, which had reignited fears of an escalating trade war that could weigh on global growth and energy demand. Adding further support, OPEC+ announced a smaller-than-expected output increase. The EIA’s latest outlook also projected that US distillate inventories will remain below average through 2026, constrained by strong export demand, reduced refining capacity, and large stock drawdowns earlier this year that saw inventories fall 17%, or roughly 22 million barrels, in the first half of 2025.
