It is possible that some of the early morning gains in January heating oil came in response to Singapore inventory data that showed a decline in middle-distillates to their lowest level in 3.5 years. In the US, EIA distillate stocks rose 2.533 million barrels last week, which was quite different than expectations for a draw. Current inventories stand at 19.189 million barrels below last year and 3.291 million below the five year average. This build comes as US refiners produced more than 5.0 million barrels of distillates last week, which was the largest rate going back to 1982. Average total distillate demand for the past four weeks was up 3.35% compared to last year. Heating oil stocks at 37.95 million barrels is the lowest for this week since 2008.
Join the Discussion