1.   An unexpected drop in refinery production caused inventories of heating oil and other distillate fuels to slip last week, a report from the American Petroleum Institute showed.

2.   As a result, traders expect reserves of heating oil and other distillate fuels will bulge in the weeks ahead.

3.   Both bulletins showed small weekly rises in inventories of heating oil and other distillate fuels that were close to analysts expectations and small drops in gasoline inventories.

4.   Also pushing prices lower, Colonial Pipeline Co. said it would allow shipments of heating oil and other distillate fuels through a pipeline normally reserved for gasoline.

5.   Changes to stockpiles of heating oil and other distillate fuels, and stockpiles of gasoline, were within expectations.

6.   Crude oil stockpiles also fell while supplies of heating oil and other distillate fuels rose.

7.   In addition, spring planting season will mean an increase in demand for other distillate fuels, such as diesel.

8.   In particular, a larger-than-expected increase in inventories of heating oil and other distillate fuels expanded an already ample year-on-year surplus.

9.   Inventories of heating oil and other distillate fuels posted smaller-than-expected gains last week in reports issued by the American Petroleum Institute and Department of Energy.

10.   Inventories of distillate fuels fell last week, according to the American Petroleum Institute, even though production was higher.