December heating oil prices trended higher during the initial morning hours, supported by gains in crude oil and an improved macroeconomic tone. Despite EIA inventory data yesterday that showed a larger than expected draw of 646,000 barrels, concerns over demand and weakness in crude oil pressured the market lower. EIA distillate stocks stand 27.446 million barrels below last year and 30.696 million below the five year average. Distillate imports came in at 59,000 barrels per day compared to 85,000 barrels the previous week. Average total distillate demand for the past four weeks was down 7.71% compared to last year. Meanwhile, EIA heating oil stocks rose 10,000 barrels and are 11.407 million barrels below last year.
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