December heating oil prices managed to rebound from their early morning lows, supported by gains in crude oil and US dollar weakness. Some traders were cautious after a weak finish to yesterday's session. EIA distillate stocks fell 3.575 million barrels, which was wider than expected. This widened the deficit compared to last year to 22.985 million barrels and was 4.920 million below the five year average. Distillate imports came in at 122,000 barrels per day compared to 147,000 barrels the previous week. Average total distillate demand for the past four weeks was up 6.60% compared to last year. Meanwhile, EIA heating oil stocks rose 561,000 barrels, which was the lowest for this week since 2008.
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