NEW YORK, Feb 6, 2026, 06:46 (EST) — Premarket
- NYMEX heating oil futures slipped roughly 0.4% in early trading, hovering near $2.38 a gallon.
- Last week, U.S. distillate stocks took a steep dive, providing crucial backing for diesel and heating fuel prices.
- Traders are focused on U.S.-Iran talks and the upcoming U.S. inventory data next week for clues on market direction.
NYMEX heating oil futures (NY Harbor ULSD) dipped roughly 1 cent, or 0.4%, settling at $2.3830 a gallon by 0646 EST. The contract swung between $2.38 and $2.443 during the session.
This move is significant since ULSD sets the standard for U.S. diesel and a large portion of the wholesale heating-oil sector. During winter, that connection often sharpens quickly as inventories drop and cold-weather demand rises.
U.S. distillate fuel oil inventories, covering diesel and heating oil, dropped to 127.368 million barrels for the week ending Jan. 30, according to the Energy Information Administration. That’s down from 132.921 million barrels recorded the previous week.
Crude prices held steady ahead of U.S.-Iran talks in Oman, leaving traders wary over potential supply disruptions near the Strait of Hormuz. “Investors are watching the U.S.-Iran talks,” said Tamas Varga, an oil analyst at PVM, noting that market sentiment hinges on the results. Brent rose 7 cents to $67.62 a barrel, while U.S. WTI also added 7 cents, reaching $63.36 by 1055 GMT. Brent was on track for a weekly decline of 4.3%. Reuters
Oil dropped nearly 3% in the previous session following news that the U.S. and Iran agreed to hold talks, which eased some short-term supply concerns. Still, traders remain wary about what a potential deal might entail. “There is still scepticism that any reasonable deal can be made with Iran,” noted Phil Flynn, senior analyst at Price Futures Group. Reuters
The EIA reported a 3.5 million barrel drop in commercial crude stocks, bringing them down to 420.3 million for the week ending Jan. 30. Distillate fuel inventories fell by 5.6 million barrels, hovering about 2% below the five-year average. Refinery runs dipped, with utilization falling to 90.5%. Distillate production averaged 4.8 million barrels per day, while four-week distillate demand—measured by products supplied—averaged 4.0 million bpd, marking a 6.2% decline from the same period last year.
Heating oil has slid amid a wider commodity retreat, pressured by a stronger dollar and waning risk appetite. Christopher Wong, strategist at OCBC, noted that “sentiment (has) turned soggy across most asset classes,” as investors trimmed exposure and losses compounded in thin markets. Reuters
Gasoline barrels appear more flexible than diesel at the moment, and that gap is showing in daily price moves. As a result, heating oil is now more vulnerable to supply disruptions than it was just weeks ago.
Still, the trade can shift fast. A warmer forecast or a jump in refinery output might ease the distillate rally. Meanwhile, a sudden breakdown in Gulf negotiations could push a geopolitical risk premium back into crude and product prices.
Coming next: headlines from the Oman talks and their impact on how the market sees supply risk. Traders are also gearing up for the EIA’s weekly petroleum report, set for release on Feb. 11.
