February heating oil established a higher high during the early morning hours and reached its highest level since December 5th in the process. Some traders were encouraged by yesterday's upside breakout on the charts, especially since it appeared to be accompanied by above average trading volume. Other traders pointed to solid resistance above those levels as limiting factor to any further advances. While a slight shift in weather forecasts boosted hopes for a return in heat-related demand, the National Weather Service projected heating oil demand this week to run a little more than 13.0% below normal.
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