FOX Business contributor Phil Flynn warns Taylor Riggs that a rebound in Chinese economic growth could trigger a surge in U.S. oil prices. It highlights how U.S. energy producers are currently maintaining stability in global markets.
The Department of Energy (DOE) announced plans Wednesday to lend up to about a third of the U.S. emergency reserve of heating oil in an effort to ease price pressures facing consumers as global conflicts limit energy supplies.
The announcement said the DOE would loan up to 315,000 barrels of fuel oil from the Northeast Fuel Oil Reserve to mitigate supply disruptions. The reserve holds a supply of one million barrels of ultra-low sulfur distillate, which serves as fuel oil, at four locations in the Northeast due to fuel oil’s popularity as an important source of home heating in the region.
Under the terms of the DOE tender, companies that borrow from the reserve during the 2026-2027 heating season must return the same volume of fuel oil plus a premium to replenish the reserve before the 2027-2028 heating season.
“The Trump Administration is committed to doing everything we can to lower energy costs for the American people,” said Energy Secretary Chris Wright. “After receiving the letter from Senators Collins and Kings and extensive discussions with Senator Collins, I have directed the Department to exchange barrels from our Northeast heating oil reserve to mitigate increased heating oil costs over the upcoming winter.
Trump announces $8 billion bailout for farmers to cover rising diesel costs amid attacks on global supply
Energy Secretary Chris Wright said the temporary measure should make supply easier, but urged New York and New England states to build a pipeline. (Anna Moneymaker/Getty Images)
“Of course, this is a temporary measure to address a temporary interruption in supply. I encourage the governors of New York and New England to work with the Trump administration to build the Constitution Pipeline and replace heating oil with low-cost natural gas. This would save their residents billions of dollars in heating and electricity costs,” Wright added.
Sen. Susan Collins, Republican of Maine, said in a statement that she was pleased that the Trump administration responded to the demand to increase the supply of heating oil by releasing reserves.
“About half of Maine households rely on heating oil to heat their homes, and I have repeatedly urged the administration to use every tool to increase supply and lower energy prices. The department anticipates this release will put downward pressure on home heating oil costs and make a real difference for Maine homeowners as they prepare for winter,” Collins said.
TRUMP ADMINISTRATION COMMITS UP TO $42M TO RELAUNCH BLOCKED NORTHEAST NATURAL GAS PIPELINE
Fuel oil costs have increased this year due to supply disruptions. (Matt Stone/MediaNews Group/Boston Herald via Getty Images)
Collins noted in a news release that the planned release would represent a 13 percent increase in home heating oil supplies in New England and should help drive down prices, as heating oil costs are up 70 percent from a year ago.
Sen. Angus King, R-Maine, added that their state “has been hit particularly hard by rising fuel prices since the start of the war in Iran and the most obvious example is heating oil.”
King said Maine is “one of the most dependent states on home heating oil and the cost is absolutely exorbitant. This release of oil stored in New England will hopefully be of some help.”
Trump says Russia agreed to deliver millions of diesel fuel after ‘very successful discussion’
Fuel oil is an important source of home heating in the Northeast. (Luke Sharrett/Bloomberg via Getty Images)
Releases from the reserve would be completed by November 13 and would come from storage sites in Boston, South Portland, Maine; and New Haven, CT.
The volume available per site would not exceed 150,000 barrels, while the minimum quantity proposed would be 25,000 barrels. Offerors can submit multiple offers, and the process aims to ensure a competitive bidding process in which fuel retailers and terminal holders can participate.
Bids for the DOE tender would be expected by next Tuesday, October 27.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Gn bussni
