With energy prices surging ahead of the midterm elections, the Trump administration said Wednesday that it will release up to 315,000 barrels of fuel oil from the Northeast Home Heating Oil Reserve.
"The Trump Administration is committed to doing everything in our power to lower energy costs for the American people," Energy Secretary Chris Wright said in a statement.
Wright added that the move comes in response to communications with Sens. Susan Collins and Angus King of Maine. Collins, a Republican, is in the middle of a tough reelection campaign against Democratic challenger Troy Jackson, in a political season that is being shaped by voter anger about high prices, especially for energy.
The Northeast oil reserve holds about 1 million barrels of ultra-low sulfur distillate, which is similar to diesel, in storage facilities stretching from New York to Maine, a region that is heavily reliant on fuel oil during the winter. In the past, the reserve has been used in response to severe storms that have caused temporary shortages. The current global shortage of diesel, which is pushing prices to record highs, is related to disruptions caused by President Trump's war with Iran.
The planned release is not expected to affect fuel prices significantly. As Bloomberg notes, about 1.2 million barrels of diesel and other distillate fuels are consumed on the East Coast every day. Companies that borrow fuel are obligated to "return the same volume of fuel oil plus a premium," so the reserve is filled up ahead of next year's heating season.