New York, Feb 11, 2026, 12:46 EST — Regular session
- By 11:55 a.m. ET, NYMEX March heating oil futures had climbed 2.6%, landing at $2.4604 per gallon.
- Distillate stocks dropped by 2.7 million barrels last week, EIA data showed, while crude inventories jumped sharply.
- U.S.-Iran headlines stay on traders’ radar, with next week’s U.S. inventory update also in focus.
Heating oil futures on NYMEX jumped Wednesday, pulled higher by a wave of buying across the oil sector after U.S. data showed distillate stocks fell. March heating oil was last up 6.16 cents, or 2.57%, to $2.4604 a gallon at 11:55 a.m. ET, having touched $2.4803 earlier in the session.
This shift carries weight. Winter demand hasn’t let up, and draws on distillate stocks can quickly squeeze supplies in the U.S. Northeast—pushing diesel prices higher for truckers and industrial users. Heating oil futures serve as the benchmark for ultra-low sulfur diesel (ULSD), so when they climb, the impact hits both freight rates and refining margins.
U.S. distillate fuel oil stockpiles dropped by 2.703 million barrels to 124.665 million for the week ended Feb. 6, according to the Energy Information Administration. Refinery runs edged down: utilization came in at 89.4% of capacity, compared to 90.5% the previous week. The EIA’s gauge of distillate demand, “products supplied,” climbed to 4.449 million barrels per day. Energy Information Administration
Crude prices slipped. U.S. commercial crude stocks surged by 8.5 million barrels, reaching 428.8 million barrels—analysts in a Reuters poll had been looking for just a modest increase, according to a separate Reuters report.
Traders can’t seem to shake their focus on distillates. Crude builds might slow any rally, but when distillates draw down—especially without an uptick in refinery runs—it lands harder, squeezing both consumers and refinery margins.
Oil climbed, even with no actual supply interruptions, as the market kept a close eye on Middle East tensions. Brent advanced $1.22 to $70.02 a barrel—up 1.77%—as of 11:47 a.m. ET. U.S. West Texas Intermediate tacked on $1.21, or about 1.89%, at $65.17, according to Reuters. “Tensions in the Middle East continue to support prices, although there has been no supply disruption so far,” said UBS oil analyst Giovanni Staunovo. Reuters
Refined products moved higher as well, with heating oil notching the biggest gains. RBOB gasoline futures climbed, and distillate stockpiles continued to shrink thanks to the recent cold snap—keeping upward pressure on diesel-linked contracts, according to OPIS in a market note.
The market’s bidding up those barrel components refiners have trouble balancing. Diesel and heating oil both come from the same stream—when one’s drawn down, the other tightens too, unless refiners ramp up runs or imports step in.
That said, the trade isn’t locked in. Cooler heads could prevail fast if temperatures warm, refinery activity bounces, or another round of crude stockpiles hits. Take away the geopolitical buzz and some of the risk premium could drain right out of the market.
The EIA’s Weekly Petroleum Status Report lands Feb. 19. Traders also have their eyes on fresh weather runs and whether distillate draws start to look like a pattern instead of just a blip.
On top of tracking weekly numbers, traders have their eyes on producer action. This week, OPEC flagged expectations for softer demand for OPEC+ crude going into the second quarter. Eight members from the group are scheduled to sit down March 1, weighing whether to restart output hikes in April—a call with potential to sway crude supplies well into spring, and shift the landscape for diesel and heating oil refining margins.
