February heating oil prices traded higher during the overnight and early morning hours but reversed heading into the US trading hours. Some traders indicated there might have been support for the market coming from limited supply flow through the colonial pipeline. However, there is the potential for reduced diesel demand from China in January as players there back away from higher spot market prices. Expectations for this morning's EIA data are for a build in distillate supplies in the range of 750,000 to 1.0 million barrels.