Market Flux Event
US to Release Up to 315,000 Barrels From Emergency Heating Oil Reserve to Combat Surging Diesel Prices
Read this in the Market Flux appThe Trump administration announced it will loan up to 315,000 barrels from the US emergency heating oil reserve, nearly one third of the 1-million-barrel stockpile, as it moves to bring down prices driven sharply higher by diesel shortages linked to the wars in Iran and Ukraine. The Department of Energy said deliveries from reserves held in Maine, Massachusetts, and Connecticut are to be completed by November 13, with the agency reserving the right to evaluate whether additional releases will be needed beyond that point.
The move reflects the broader pressure the administration faces on fuel prices ahead of winter heating season, at a time when broader SPR releases have already drawn down strategic crude reserves to 44-year lows. The heating oil reserve loan is structured similarly to recent crude oil exchange programs, meaning recipients are expected to return the barrels rather than purchase them outright.
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Sources
- ReutersUS aims to loan about a third of heating oil reserve in bid to tame prices
- InvestingExclusive-US aims to loan about a third of heating oil reserve in bid to tame prices
- StaunovoUS aims to loan about a third of heating oil reserve in bid to tame prices Energy Department to loan up to 315,000 barrels from Maine, Massachusetts and Connecticut Deliveries are set to be completed by November 13 Department will evaluate whether further reserve releases are necessary, a department source says The Trump administration is offering to loan up to nearly a third of the 1-million-barrel US emergency heating oil reserve, the Department of Energy said on Wednesday, in a bid to tame prices, which have surged on diesel shortages due to the wars in Iran and Ukraine. #oott