August heating oil prices experienced a gap lower opening Thursday evening and established a lower low during the initial morning hours. Yesterday's EIA distillate inventory data showed an unexpected decline of 1.051 million barrels. EIA distillate stocks are 24.261 million barrels below last year and 23.273 million below the five year average. Distillate imports came in at 81,000 barrels per day compared to 90,000 barrels the previous week. Average total distillate demand for the past four weeks was up 3.83% compared to last year. EIA heating oil stocks rose 120,000 barrels, but are at their lowest level for this week of the year since 2008.
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