NEW YORK, Feb 17, 2026, 13:03 EST — Regular session
- March heating oil slipped 0.3% by midday, echoing crude’s decline.
- Attention shifted back to U.S.-Iran nuclear negotiations, with Iran reporting progress in the talks.
- Next up for traders: Thursday’s release of delayed U.S. inventory data.
Heating oil contracts in the U.S. slipped on Tuesday, tracking a dip in crude as fresh indications emerged from the U.S.-Iran nuclear discussions. March heating oil traded at $2.3805 a gallon, down 0.74 cent, or 0.31%, as of 1:03 p.m. EST.
Why does the contract matter? “Heating oil” on NYMEX serves as the primary U.S. futures benchmark for ultra-low sulfur diesel (ULSD) — the distillate fueling both trucks and home heaters. Any shift there tends to hit wholesale fuel prices and hedging strategies fast.
Timing’s no small thing here. Late-winter distillates are sensitive—not just to cold snaps, but geopolitical jolts, too. When supply gets tight, diesel takes the first punch, and refiners usually don’t have much flexibility to shift what they’re making right away.
Brent slipped $1.41, down 2.1%, landing at $67.24 a barrel, while U.S. West Texas Intermediate (WTI) dropped 65 cents, or 1.0%, to $62.24 by late morning. The move followed comments from Iran’s foreign minister that Tehran and Washington had settled on the main “guiding principles” in their nuclear negotiations, though a final deal wasn’t close yet. “Oil prices are likely to stay volatile, with sharp two-way swings driven by diplomatic signals,” said Sugandha Sachdeva, founder of SS WealthStreet. Reuters
Citi, in a note out Monday, flagged geopolitics as a short-term prop for crude. But if Russia-Ukraine talks or an Iran thaw materialize later this year, Citi expects both oil prices and fuel margins to come down. “It is our base case” that agreements are struck by summer, the bank said, adding it sees both diesel and gasoline cracks softening. Reuters
According to the U.S. Energy Information Administration’s daily update tracking prices as of the Feb. 13 close, New York Harbor heating oil spot landed at $2.32 a gallon. Low-sulfur diesel in the same market clocked in at $2.47. EIA put the Gulf Coast 3-2-1 crack spread—a stand-in for refinery margins—at $17.90 per barrel.
Traders are watching for the next driver: delayed government inventory numbers, a result of the President’s Day holiday. The EIA plans to publish its Weekly Petroleum Status Report for the week ending Feb. 13 on Thursday, Feb. 19 at 12:00 p.m. ET, according to the agency’s schedule.
Folks tracking heating fuels have another release to watch for that day. The EIA plans to post its weekly Heating Oil and Propane Update—part of its winter schedule—on Thursday, Feb. 19, at 2:00 p.m. ET.
Still, nerves remain raw in the market. One misstep in diplomatic efforts, or new trouble disrupting Middle East supply, could send risk premiums sharply higher. Heating oil typically moves alongside crude in those moments.
Traders are waiting for Thursday’s inventory data to drop, and they’re also watching for anything fresh from the U.S.-Iran front. Those are expected to drive sentiment through week’s end.
