Like the rest of the energy complex, February heating oil managed a distinct upside breakout on the charts this morning and in the process rose to its highest level since December 13th. Not surprisingly, the ongoing war of words between the US and Iran gave the market part of its upward track, but prices were also given an added boost by positive macro economic news from both China and the Euro zone overnight. While EIA inventory data recently showed an unexpected build in distillate supplies, inventories were still 20.605 million barrels below last year and 3.448 million barrels below the five year average. It is also possible that slightly colder US temps ahead are providing some minimal support to prices, but mild weather so far this winter could require severe cold to actually create a physical shortage of US heating supplies. The Commitments of Traders Futures and Options report as of December 27th showed non-commercial traders were net long 10,850 contracts, an increase of 2,248 contracts. Non-commercial and nonreportable traders combined held a net long position of 22,078 contracts, an increase of 5,400.