It's now two weeks in a row that US distillate stocks have risen. This is thanks to a dramatic recovery in production as well as slackening demand over the last month.
Everybody seems to be happy and carefree now on fuel prices. However, distillate stocks are still outside the average range for this time of year.
Moreover, the Central Atlantic District (DC, DE, MD, NJ, NY, PA) -- the country's top heating fuel user -- has experienced warmer than usual weather over this last month of falling demand.
The speculators have all run to the currency markets over the last six weeks, but there's nothing to say they won't return to oil markets when winter finally arrives.