The current backwardation in heating oil futures narrowed this week, with spot prices aligning closer to 1-month contracts. This shift often signals tighter near-term supply conditions. “We’ve done everything we’re going to do with fossil fuel, and that’s not the case with heat pumps,” Shapiro says. That came alongside a smaller but still notable 0.27 million barrel build in the prior week. Heating oil futures are supported by rising wholesale prices in New England. Regional supply chains face logistical challenges after recent storms disrupted trucking routes.
