March heating oil prices traded higher during the early morning hours and managed to bounce back into the middle of the February trading range. Some traders suggested that yesterday's late morning gains came in response to higher cash jet fuel prices, supported by ongoing logistical issues with the Colonial pipeline. The ensuing price breakdown from the $2.7700 level was viewed by some traders as a sign of weakness. Expectations for this morning's EIA distillate inventory report are for a 750,000 barrel draw on prospects for a rebound in heat-related demand.
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