January heating oil prices traded lower overnight and reached their lowest level since October 11th. Some traders pointed to a weak macroeconomic tone and well-below normal heat-related demand forecasts for this week as factors pressuring the market lower. The latest from the National Weather Service estimated heat-related demand for heating oil to run more than 14.0% below normal in the coming week. The Commitments of Traders Futures and Options report as of December 6th showed non-commercial traders were net long 16,463 contracts, a decrease of 4,575. Non-commercial and nonreportable traders combined held a net long position of 34,184 contracts, down 3,997 on the week. Speculators turned to active sellers during the COT report window and probably saw more long-liquidation selling during the 3.6% slide since the report window closed.
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