New York, Feb 12, 2026, 12:42 EST — Regular session
U.S. heating oil futures fell about 2.7% on Thursday, tracking a broader oil selloff. The front-month contract was last down 6.56 cents at $2.3748 a gallon by 12:17 p.m. EST, after trading as high as $2.4547. (The Wall Street Journal)
The move matters because “heating oil” is effectively the U.S. benchmark for ultra-low sulfur diesel (ULSD) — the fuel that heats homes in parts of the Northeast and keeps trucks moving. When prices swing this fast, it feeds into near-term hedging for wholesalers and big fuel buyers.
It also lands in the middle of winter inventory math. Distillates can look comfortable on paper and still get tight in a hurry if cold snaps hit or refineries stumble, and the East Coast has a habit of showing it first.
Crude led the direction again. Brent and U.S. WTI were down about 2% after the International Energy Agency cut its 2026 demand outlook and flagged a surplus, while the market also backed away from earlier fears of U.S. action against Iran; “The market’s doubling down on the lowering demand forecast,” said Phil Flynn at Price Futures Group. (Reuters)
U.S. supply data was mixed for distillates. The Energy Information Administration said on Wednesday that crude inventories rose by 8.5 million barrels to 428.8 million, while refineries ran at 89.4% of capacity; distillate production averaged 4.9 million barrels per day.
On the product side, distillate fuel oil stocks — a category that includes diesel and heating oil — fell to 124.7 million barrels in the week ended Feb. 6, down 2.7 million. East Coast distillate inventories dropped by 2.1 million barrels to 29.1 million, while Gulf Coast stocks rose to 50.0 million.
Geopolitics stayed in the frame, even as prices retreated. Oil settled higher a day earlier on worries over U.S.-Iran tensions, and “The market continues to be supported by the tension between the U.S. and Iran,” said Andrew Lipow of Lipow Oil Associates; PVM’s Tamas Varga wrote that “rhetoric remains belligerent” but saw no sign of escalation for now. (Reuters)
Still, Thursday’s tape showed how quickly traders can flip from headline risk to demand. Heating oil tends to follow crude on days like this, even when distillate balances look tighter than gasoline.
But this isn’t a one-way market. A colder-than-expected turn in the Northeast or a refinery outage would hit distillate availability quickly, while a deeper demand downgrade or another string of crude builds could keep pressure on the whole complex.
Next up is the EIA’s next weekly petroleum status report, due Feb. 19, along with any read on the timing and tone of the next round of U.S.-Iran talks. (U.S. Energy Information Administration)
