August heating oil prices trended lower during the initial morning hours but was able to bounce back toward unchanged levels heading into the US opening. The market experienced its fourth consecutive higher close in yesterday's trade, helped in part by EIA inventory data that showed an unexpectedly large distillate draw last week of 2.279 million barrels. EIA distillate stocks stand at 23.401 million barrels below last year and 20.933 million below the five year average. Distillate imports came in at 90,000 barrels per day compared to 67,000 barrels the previous week. Average total distillate demand for the past four weeks was up 0.14% compared to last year. EIA heating oil stocks fell 430,000 barrels and fell to their lowest level for this week of the year since 2008.
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