September heating oil prices fell to their lowest level since January 2011 overnight, but they eventually climbed back into positive territory. Some traders suggested that the sharp, 15.4% decline from the August 1st high to this morning's low could have overextended the market to the downside and made it due for a corrective rebound. However, US demand for distillates remains a question mark for the heating oil market, as global growth targets have been revised lower. The slumping demand outlook is expected to be reflected in in this week's EIA report, which is expected to show distillate inventories increased as of last week increasing by around 1.0 million barrels.
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