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via energy.gov

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Home/Energy/Energy Department to lend up to 315,000 barrels from Northeast heating oil reserve
VERIFIEDBy Xavier Rivera·Wednesday, October 21, 2026 at 8:07 PM EDT·1.5 min read

Energy Department to lend up to 315,000 barrels from Northeast heating oil reserve

The Energy Department is offering to exchange up to 315,000 barrels of fuel oil from the Northeast Home Heating Oil Reserve to ease heating oil costs this winter. Companies must return the same volume plus a premium, with deliveries due by November 13.

Source:energy.gov
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Energy Department to lend up to 315,000 barrels from Northeast heating oil reserve
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The U.S. Department of Energy on Oct. 21 issued a request for proposals to exchange up to 315,000 barrels of ultra-low sulfur distillate from the Northeast Home Heating Oil Reserve, citing supply chain disruptions in the region.

How the exchange works

Borrowing companies must return the same volume of fuel oil plus a premium, so the reserve is refilled before the 2027-2028 heating season. Barrels will come from storage in South Portland, Maine; Boston; and New Haven, Connecticut, with no more than 150,000 barrels from any one site.

Offers must be at least 25,000 barrels and no more than 30,000 barrels each, and companies may submit more than one. Bids are due by 11 a.m. Central Time on Oct. 27, and deliveries are scheduled to finish by Nov. 13.
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Why now

Energy Secretary Chris Wright said he acted after a letter from Sens. Susan Collins and Angus King of Maine, calling the move "a temporary measure to solve a temporary supply disruption" to ease heating oil costs this winter. The reserve holds about 1 million barrels, so the exchange covers nearly a third of it, Reuters reported.
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Diesel prices have surged on shortages tied to the wars in Iran and Ukraine, according to Reuters. Brent crude settled at $108.82 a barrel on Wednesday, near a five-month high, while U.S. distillate stockpiles rose 1.68 million barrels last week to 104.3 million, EIA data showed.
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