I asked why heating oil and distillate prices have been volatile in a June 12, 2026, Barchart article, concluding with the following:
An end to hostilities in the Middle East and reopening of the Strait of Hormuz would likely cause oil and oil product prices to decline, with heating oil and other medium distillates leading the way on the downside. However, an escalation in the region could push prices higher, above the early March high, and a challenge to the Q1 2022 all-time high of $4.6709 per gallon wholesale. Heating oil futures soared to that price in March 2022 when Russia invaded Ukraine, causing supply concerns as Russia is a leading crude oil-producing country and cooperates with the international oil cartel on production policy. NATO countries imposed sanctions on Russian petroleum, which is priced on the Brent benchmark.
Expect a continuation of high volatility in distillate product prices, and you will not be disappointed. Distillates are a critical factor for inflationary pressures.
