Heating oil prices in the US have declined toward $4.80 per gallon after the Trump administration moved to tap emergency fuel supplies in an effort to curb rising costs ahead of the midterm elections. The Department of Energy announced it will loan 315,000 barrels from the 1 million-barrel Northeast Home Heating Oil Reserve, with deliveries scheduled to be completed by November 13. Energy Secretary Chris Wright characterized the release as a short-term measure to address recent supply disruptions.
Roughly 4% of US households, concentrated largely in Northeastern states, depend on heating oil. However, the move is not expected to have a significant impact on the broader diesel market, as the East Coast alone consumes about 1.2 million barrels per day of diesel and other distillates. Created under President Bill Clinton, the reserve is intended to provide the region with approximately 10 days of supply and was previously drawn down following Hurricane Sandy and major snowstorms in 2012.
