U.S. to Tap Heating Oil Reserves Ahead of Midterm Elections

With soaring heating oil prices becoming a political issue, the United States said on Wednesday that it would tap its strategic reserves to help ease the energy crunch.But analysts say the effort is unlikely to provide meaningful relief.The plan covers a loan of up to 315,000 barrels of heating oil, or nearly a third of the one-million-barrel supply in the government’s Northeast Home Heating Oil Reserve, the Department of Energy said in a statement.

The department will hold a bidding process for fuel retailers and terminal holders, and deliveries are scheduled to be completed by Nov.13.Companies that borrow fuel from the reserve will have to return the same volume before the next heating season, the statement said.“This is a temporary measure to solve a temporary supply disruption,” the secretary of energy, Chris Wright, said in the statement.Heading into the midterm elections, Americans are facing higher heating oil prices than ever before.

This issue is particularly stark in Maine, where Susan Collins, a Republican, is defending her Senate seat against Troy Jackson.Heating oil prices jumped to a national average of $6.14 a gallon the week of Oct.12 from $6.05 the week before, according to data from the U.S.

Energy Information Administration.Heating oil prices have skyrocketed 50 percent since the war in Iran started at the end of February.After the Energy Department’s announcement, the November contract for heating oil fell 3 percent to $4.77 a barrel.In Maine, heating oil prices are as high as $6.30 a gallon.

In parts of New York, prices are even higher, crossing $6.50 a gallon.“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,” Senator Collins said in a statement on Wednesday.But analysts said the announced release was unlikely to provide much relief to Americans worried about the soaring costs of heating their h...