July heating oil prices grinded higher during the initial morning hours, supported by an improvement in outside market sentiment and higher crude oil prices. Some traders suggested that the heating oil might be building a base inside of last week's price extremes of $2.8843 and $2.8048. While the outside market tone has offered support this morning, sluggish distillate demand remains a concern. The Commitments of Traders Futures and Options report as of May 22nd showed non-commercial traders were net long 2,653 contracts, a decrease of 3,904. Non-commercial and nonreportable traders combined held a net long position of 2,116 contracts, for a decrease of 9,944 during the report window.
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