U.S. taps Northeast heating oil reserve as prices hit $6.50 a gallon ahead of winter

With home heating oil averaging $6.50 a gallon in New York and $6.30 in Maine — and winter weeks away — the U.S. Department of Energy announced Wednesday it will loan up to 315,000 barrels from the Northeast Home Heating Oil Reserve, roughly one-third of the entire stockpile, in a bid to push prices down before the coldest months arrive.

The release, structured as an exchange rather than a permanent drawdown, requires any company that borrows from the reserve during the 2026-27 heating season to return the same volume of ultra-low sulfur distillate plus a premium before the 2027-28 season begins. Bids are due by 11 a.m. Central Time on Tuesday, October 27, and all fuel transfers must be completed by November 13, according to the DOE.

The Trump Administration is committed to doing everything in our power to lower energy costs for the American people. After receiving Senators Collins' and Kings' letter and extensive discussions with Senator Collins, I have directed the Department to exchange barrels from our Northeast Home Heating Oil Reserve to mitigate heightened home heating oil costs during the upcoming winter.— Chris Wright, U.S. Secretary of Energy

The announcement followed months of bipartisan pressure from Maine's congressional delegation. Republican Sen. Susan Collins and Independent Sen. Angus King sent a letter to President Trump in September urging him to tap the regional stockpile as energy costs climbed across New England, according to Just the News. Collins said the release amounts to a 13 percent increase in home heating oil supplies for the region.

Approximately half of Maine households rely on fuel 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.— Sen. Susan Collins, R-Maine

Maine has been hit especially hard by the run up in fuel prices since the beginning of the Iran War and the most obvious example is home heating oil. Maine is one of the most dependent states in the country on home heating oil and the cost is absolutely through the roof. This release of stored oil in New England will hopefully be some help.— Sen. Angus King, I-Maine

Markets responded immediately. On Wednesday afternoon, heating oil futures traded on the New York Mercantile Exchange dropped 3.4 percent to $4.82 a gallon as traders factored in the added regional supply, according to Just the News. Patrick Woodcock, president of the Maine State Chamber of Commerce and former director of the Maine Governor's Energy Office, said the release would replenish what he described as a 'very tight reserve system here in New England.'

Storage sites in South Portland, Maine; Boston, Massachusetts; and New Haven, Connecticut are the three locations from which the DOE will draw supplies. No single site may supply more than 150,000 barrels, and the minimum offer quantity is 25,000 barrels. Both fuel retailers and terminal holders are eligible to bid, a structure the DOE said is designed to ensure competition and direct product toward areas facing the tightest shortages.

The Northeast Home Heating Oil Reserve holds one million barrels of ultra-low sulfur distillate across four locations in the region. It has been tapped only once before: in 2012, when President Barack Obama directed 120,000 barrels to the Department of Defense for Hurricane Sandy relief, according to Just the News.

Wright framed the action explicitly as a stopgap, using it to press a longer-term argument for natural gas infrastructure. Wright called on the governors of New York and New England to partner with the Trump administration on construction of the Constitution Pipeline, arguing it would 'save their residents billions of dollars in home heating and electricity costs.'

Not everyone received the announcement as good news. Troy Jackson, the Democratic Senate candidate challenging Collins in Maine, dismissed the loan as a political maneuver timed to the midterm election, now two weeks away. The RealClearPolling average at the time of the announcement placed Jackson 1.6 percentage points ahead of Collins, according to Just the News.

Susan Collins is taking a victory lap over what Trump's own energy secretary calls a 'temporary measure' to address the crisis she helped create. I've said it before and I'll say it again: Susan Collins is like an arsonist who sets the house on fire and then wants credit for bringing you a cup of water.— Troy Jackson, Democratic Senate candidate, Maine

Why it matters — With heating oil above $6 a gallon and winter approaching, the release directly affects the roughly half of Maine households — and many others across New England — who depend on the fuel to stay warm, while the political and structural debate over long-term energy infrastructure is only beginning.

Sources differ on Whether the release will meaningfully ease prices: Will put 'downward pressure on home heating oil costs' and represent a 13% supply increase for New England. (foxbusiness.com / Collins statement) vs Described as a 'short-term band-aid' unlikely to address underlying supply and policy issues. (justthenews.com / Jackson campaign)

Reported by reuters.com, energy.gov, foxbusiness.com, justthenews.com