05.02.202613:52:08UTC+00Heating Oil Drops on US-Iran Descalation Hopes

U.S. heating oil futures have dipped below $2.40 per gallon following a short-lived two-session rise. This downturn comes amidst declining crude oil benchmarks that have reduced refinery input costs, limiting price increases, while expectations for warmer weather continue to curb demand. Prices mirrored the downward trend of oil benchmarks after Tehran announced plans to engage in talks with Washington this week, alleviating concerns that escalating tensions in the Middle East might disrupt energy supplies. Iranian Foreign Minister Abbas Araghchi revealed that discussions would be held in Oman on Friday, a plan that was later corroborated by a White House official. However, uncertainty remains about the discussions' scope, as Tehran aims to focus solely on its nuclear program. Meanwhile, data from the Energy Information Administration (EIA) indicated that U.S. crude inventories decreased by roughly 3.5 million barrels in the week leading up to January 30th. Additionally, there was a significant decline in distillate stocks by approximately 5.55 million barrels the previous week, reflecting robust consumption that had already occurred during the recent Arctic cold snap.