August heating oil prices were on a lower track during the initial morning hours. Some of the weakness in the market appeared to come in the wake of private industry data late Tuesday that showed a rather large and unexpected build in distillate supplies last week. Expectations for this morning's EIA inventory report are for a build in distillate supplies last week of around 1.0 million barrels, which compares to the five-year average build of 2.0 million barrels. Another source of weakness for the heating oil market this morning comes from the latest inventory data out of China that showed their June diesel stocks significantly higher than year ago levels.
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