Petroleum markets responded to disruptions in the Middle East in the second quarter

Oil prices swung sharply in the spring after shipping disruptions in the Strait of Hormuz, a key Middle East waterway that much of the world's oil passes through. Brent crude, a global oil price benchmark, hit $118 a barrel in late April, then fell to $72 by late June as tensions eased. A June 17 agreement between the U.S. and Iran aimed at reopening the strait helped prices settle down through the rest of the quarter, though renewed strikes in early July pushed prices back up.

The disruption also squeezed supplies of gasoline, diesel, and jet fuel worldwide, which pushed U.S. refineries to run harder than usual and export more fuel abroad. U.S. distillate (diesel and heating oil) exports and jet fuel exports both hit record highs, as other countries turned to American refiners to make up for lost supply. Refiners shifted some production toward jet fuel in particular, since global demand for it jumped the most.

For homeowners, the main takeaway is that oil and fuel markets stayed volatile this spring due to overseas events rather than anything happening domestically. If you use heating oil or diesel for home heating, prices may have moved with these swings rather than settling into a predictable seasonal pattern. Gasoline markets were also tighter than usual, with refinery margins running well above last year's levels. None of this points to a new rebate or program, but it helps explain why fuel prices bounced around more than normal this spring and early summer.