The Trump administration said it would release 315,000 barrels of ultra-low sulfur distillate from the Northeast Home Heating Oil Reserve in an effort to lower prices this winter.
The amount scheduled to be released is about a third of inventories in the reserve. The release will be conducted on an exchange basis, with companies that receive the heating oil pledging to return the same amount, as well as an additional amount as a premium for the loan, the Energy Department said in an announcement on Wednesday.
"The Trump Administration is committed to doing everything in our power to lower energy costs for the American people," Energy Secretary Chris Wright said.
Wright characterized the release as "a temporary measure to solve a temporary supply disruption."
It's not clear how successful the effort to tame prices will be, as the total release is only a small percentage of the current deficit in East Coast distillate inventories.
Releasing the inventories is one of the few domestic levers the administration can use to address voter frustration with the high cost of diesel. Heating oil costs are a particular concern in the Northeast, which has the highest percentage of homes heated by the fuel.
The Energy Information Administration warned earlier this month that costs for people heating with oil are expected to rise 21% this winter, even as temperatures are expected to be higher than last year.
Distillate inventories in the Northeast are currently at 21 million bbl. That's 21% lower than last year and 35% below levels at this time in 2024, EIA data show. In New England, where heating oil use is highest, inventories of 2.5 million bbls are 34% lower than last year and about 53% below where they were in 2024.
The Energy Department said the oil will come from NEHHOR storage sites in South Portland, Maine, Boston and New Haven, Conn. Theexchange is scheduled to be completed by Nov. 13, the department said.
For companies bidding for the fuel, the minimum offer quantity is 25,000 bbl but won't exceed 30,000 bbl. Up to 150,000 bbl will be available from any one site. Companies can submit multiple bids.
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