US reportedly aims to loan about a third of heating oil reserve to tame prices
USO•The US Department of Energy will loan up to 315,000 barrels from its 1-million-barrel emergency heating oil reserve, with deliveries set to finish by November 13. The administration will evaluate whether further releases are necessary.
1. Reserve loan plan
The Trump administration is offering to loan up to 315,000 barrels of heating oil from reserve sites in Maine, Massachusetts and Connecticut. The Department of Energy said deliveries are set to be completed by November 13, and a department source said the administration will evaluate whether further releases are necessary.
2. Fuel costs and process
The move is intended to tame prices that have surged amid diesel shortages, with diesel prices reaching records above $6.50 per gallon. The department said fuel retailers and terminal holders will be able to bid competitively for the loans. The Northeast reserve holds 1 million barrels and has been tapped once since Hurricane Sandy in 2012.
