February heating oil led the crude oil complex higher during the initial morning hours, helped by a softer US dollar and higher risk assets. It is possible that heating oil drafted an added level of support from overnight data that pegged India's November diesel demand up nearly 17% from year-ago levels. Heating oil prices slipped in response to yesterday's EIA data that showed a larger than expected build in distillate stocks, up 3.224 million barrels last week. Still, current inventory levels remain 18.529 million barrels below last year and 2.149 million below the five year average. Distillate imports came in at 229,000 barrels per day compared to 166,000 barrels the previous week. Average total distillate demand for the past four weeks was up 0.90% compared to last year. EIA heating oil stocks fell 1.865 million barrels. Current inventory of 37.023 million barrels is the lowest for this week since 2007.
Join the Discussion