September heating oil prices reversed into negative territory this morning after breaking out to a new 3-day high. Some of this morning's weakness came from a turn lower in outside markets and weakness in Brent crude oil. It seems that the surprising jump in distillate demand highlighted in yesterday's EIA inventory report has been lost. EIA distillate stocks fell 737,000 barrels last week. This brought current inventories to a 21.625 million barrel deficit compared to last year. Distillate imports came in at 99,000 barrels per day compared to 205,000 barrels the previous week. Average total distillate demand for the past four weeks was up 7.12% compared to last year. EIA heating oil stocks rose by 1.404 million barrels and are 12.777 million barrels below last year and 7.130 million below the five year average.
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