US Department of Energy to release heating oil reserves to curb prices

The US Department of Energy has announced plans to lend up to 315,000 barrels from the emergency heating oil reserve to mitigate rising fuel costs. This amount represents approximately one-third of the total one-million-barrel reserve.

The move follows bipartisan calls from Senate members after diesel prices exceeded $6.50 per gallon, driven by supply disruptions linked to conflicts in Iran and Ukraine. The administration intends to distribute the fuel via competitive bidding to fuel traders and storage operators, targeting areas facing the most significant shortages.

Deliveries from stocks in Maine, Massachusetts, and Connecticut are expected to be completed by November 13. Energy Secretary Chris Wright stated that the administration is “committed to doing everything possible to lower energy costs.” The emergency reserve has only been utilized once since Hurricane Sandy in 2012. The step is particularly critical for the New England region, where roughly one-third of homes rely on heating oil.