New York, Jan 20, 2026, 07:33 EST — Premarket
U.S. heating oil futures jumped early Tuesday, driven by forecasts of a fresh Arctic blast boosting winter fuel demand. The front-month NY Harbor ULSD contract for February climbed 7.78 cents, or 3.48%, settling at $2.3154 a gallon. (Barchart)
That’s significant since the chill isn’t limited to a single area. According to the U.S. Weather Prediction Center, highs on Tuesday will hover in the teens and 20s from the Midwest through the Northeast and Mid-Atlantic—about 15–25 degrees Fahrenheit below normal. This drop keeps distillate demand squarely in the spotlight. (Noaa)
Heating oil demand remains a regional affair, dominated by the Northeast. Around 4.79 million U.S. households relied primarily on heating oil for space heating during the winter of 2023–24, with about 82% located in the Northeast, according to federal data. (U.S. Energy Information Administration)
Natural gas prices surged sharply Tuesday, with front-month U.S. futures climbing roughly 20% to $3.71. Independent oil analyst Tom Kloza flagged the weeks ahead as potentially the toughest stretch for Northeastern heating oil and natural gas markets in nearly ten years. He shared his outlook on X: “The next two weeks look like they will present the stiffest test for Northeastern heating oil and natural gas markets in nearly a decade.” (MarketWatch)
Crude held its ground with some support. Brent climbed 15 cents to $64.09 a barrel, while U.S. WTI for February added 14 cents, settling at $59.58. A softer dollar lent a hand, even as traders grappled with demand concerns amid ongoing trade tensions and geopolitical uncertainties. (Reuters)
Traders are facing a data void following Monday’s U.S. holiday. The Energy Information Administration plans to drop its Weekly Petroleum Status Report on Thursday, adjusting the usual timing to 12:00 p.m. and 2:00 p.m. Eastern. (U.S. Energy Information Administration)
The American Petroleum Institute’s weekly inventory report, a key reference before EIA releases, adjusts its schedule during holiday weeks. Normally issued Tuesday around 4:30 p.m. Eastern, the API shifts it to Wednesday if Monday falls on a federal holiday. (American Petroleum Institute)
The seasonal story is clear: heating oil, a distillate fuel closely tied to diesel, sees demand jump sharply during cold snaps. The EIA’s winter fuels outlook highlights just how much household spending and consumption can shift when temperatures dip below normal. (U.S. Energy Information Administration)
Market mechanics only add to the volatility. NYMEX ULSD, a 42,000-gallon contract, trades almost nonstop, but it’s the U.S. daytime session that sets the settlement price most physical deals follow. (Barchart)
The weather track remains uncertain. According to the National Weather Service office in Boston, Southern New England might experience near-normal to warmer-than-normal temperatures by midweek. Then, an Arctic airmass is expected to move in Friday night. The late-weekend coastal storm currently poses a “low risk” for significant impacts. (Weather)
Coming up next: Wednesday’s delayed API data and Thursday’s EIA reports, along with updated forecasts later in the week as traders assess how far the cold snap will spread—and if the storm track will throw a wrench into logistics while driving up heating demand. The EIA’s heating oil and propane update is set for Thursday at 2:00 p.m. Eastern, per the holiday calendar. (U.S. Energy Information Administration)
