Like the rest of the petroleum complex, heating oil saw a sharp range down washout this morning, which in turn pushed prices down to very significant fresh new low for the move. While EIA heating oil stocks rose 1.181 million barrels yesterday and they are now 7.697 million barrels below last year and 9.448 million below the five year average, that news is discounted in favor of sagging forward demand expectations. As in RBOB, heating oil might be able to claim an oversold technical condition but it could be very difficult for this market to get out from under the weigh of sagging global macro economic expectations. In order to find support on the charts, traders have to go all the way back to $2.5770 on the weekly charts. EIA distillate stocks rose 1.156 million barrels yesterday and now stand at 20.864 million barrels below last year and 17.047 million below the five year average. Distillate imports came in at 67,000 barrels per day compared to 65,000 barrels the previous week. Average total distillate demand for the past four weeks was down 1.66% compared to last year.
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