March heating oil prices tracked higher early this morning and broke out to their best levels since September 2008. Yesterday's EIA report showed a decline in distillate stocks of 140,000 barrels, which was drastically smaller then industry data Tuesday afternoon that forecasted over a five million barrels decline for the week. US distillate supplies remain flush and stand 8.161 million barrels above last year and 24.718 million above the five year average. Distillate imports came in at 254,000 barrels per day compared to 241,000 barrels the previous week. Average total distillate demand for the past four weeks was down 0.57% compared to last year. Another positive feature seemed to be the drop in heating oil stocks of 1.561 million barrels to 41.977 million. While heating oil stocks remain 3.889 million below the five year average, they have experienced a 19% decline during the last seven weeks alone.