For the Quarter Ending September 2025
North America
• In United States, Furnace Oil Price Index rose in Q3 2025, driven by strong demand and low inventories.
• Production costs influenced by weakening crude oil and strengthening natural gas prices in Q3 2025.
• Demand for Furnace Oil was supported by increased industrial activity and growing goods imports.
• U.S. distillate inventories remained low through Q3 2025 due to significant draws.
• Industrial Production increased marginally by 0.1% year-over-year in September 2025.
• Producer Price Index rose 2.6% year-over-year in August 2025, increasing input costs.
• Consumer Price Index increased 3.0% year-over-year in September 2025, raising operational costs.
• Retail sales increased 5.42% year-over-year in September 2025, supporting industrial output.
• Consumer confidence declined to 94.2 in September 2025, signaling potential demand moderation.
• Strong international distillate demand led to higher U.S. exports, pressuring domestic supply.
Why did the price of Furnace Oil change in September 2025 in North America?
• Distillate inventories remained low through Q3 2025, creating upward pressure on Furnace Oil prices.
• The Producer Price Index rose 2.6% in August 2025, increasing production costs for Furnace Oil.
• Strong distillate demand, driven by industrial activity, supported Furnace Oil price increases in Q3 2025.
APAC
• In China, Furnace Oil Price Index fell in Q3 2025, influenced by global oil surplus and contracting manufacturing activity.
• Demand outlook strengthened in Q3 2025, driven by increased manufacturing production and overall oil demand growth.
• Production costs were affected by fluctuating crude oil feedstock and strengthened refining margins in September 2025.
• Industrial production increased by 6.5% year-on-year in September 2025, providing bullish support for Furnace Oil demand.
• The Manufacturing Index contracted in September 2025, indicating reduced industrial activity and dampening Furnace Oil consumption.
• Weak consumer demand (CPI -0.3%) and industrial demand (PPI -2.3%) in September 2025 signaled economic slowdown.
• Unemployment at 5.2% and low consumer confidence in September 2025 indicated economic weakness.
• Crude oil inventories in China increased significantly in Q3 2025, contributing to a global oil surplus.
• Retail sales grew by 3.0% year-on-year in September 2025, indirectly supporting industrial activity and energy consumption.
Why did the price of Furnace Oil change in September 2025 in APAC?
• Global oil surplus in Q3 2025 pressured Furnace Oil prices.
• Weak industrial demand (PPI -2.3% in September 2025) reduced consumption.
• Contracting Manufacturing Index in September 2025 reduced factory output.
Europe
• In Germany, the Furnace Oil Price Index fell quarter-over-quarter in Q3 2025, influenced by lower producer prices and high inventories.
• Furnace Oil production costs decreased, with producer prices down 1.7% in September 2025 due to lower energy costs.
• Demand for Furnace Oil weakened as Germany's Manufacturing Index was contracting in Q3 2025.
• Industrial production in Germany declined 1.0% in September 2025, further dampening Furnace Oil demand.
• Global observed oil inventories surged to a four-year high in August 2025, indicating ample supply.
• Refining margins in Europe strengthened significantly in September 2025, reaching two-year highs.
• The consumer price index rose 2.4% year-over-year in September 2025, affecting overall input costs.
• European refinery runs, including Germany, were impacted by scheduled turnarounds in Q3 2025.
Why did the price of Furnace Oil change in September 2025 in Europe?
• Producer prices decreased 1.7% in September 2025 due to lower energy costs, reducing Furnace Oil expenses.
• Global oil inventories surged to a four-year high in August 2025, indicating ample supply.
• Germany's Manufacturing Index contracted in Q3 2025, with industrial production down 1.0%, weakening demand.
