June heating oil prices traded lower during the early morning trade and fell to their lowest level since January 3rd. Some traders attributed the pressure in heating oil to the selloff in Brent and WTI crude oil, rally in the US dollar and concerns that demand could be slowing in China. While there was talk that Japanese import flow of distillates could increase as much as 30% in June, that did not seem to have an impact on heating oil prices this morning. The Commitments of Traders Futures and Options report as of May 8th showed non-commercial traders were net long 9,903 contracts, a decrease of 14,277. Non-commercial and nonreportable traders combined held a net long position of 19,967 contracts, for a decrease of 23,147 in their net long positioning.
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