June heating oil prices climbed to their highest level in nine-session this morning, supported by signs of tightening supplies. It is possible that the early out performance in the heating oil market comes in the wake of Singapore inventory data that showed their diesel and jet fuel supplies slipping to a four and a half month low. Added support in the heating oil market comes as EIA distillate inventory data showed a larger than expected 3.052 million barrel draw last week. A further decline in Gulf coast supplies was seen as a supportive force in regional diesel markets yesterday. Average total distillate demand for the past four weeks was up 0.13% compared to last year. EIA heating oil stocks fell 866,000 barrels and are 5.854 million barrels below last year.
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