XOM - White House considers burning home heating oil reserve to reduce diesel prices

The White House has become increasingly aware of the "worrisome decline" in diesel inventories in the Northeast. According to sources cited by CNN, the White House is considering a release of strategic stockpiles to combat the crisis. Given the reduction in East-coast diesel inventories of ~45mb, and given the size of the strategic "home heating oil reserve" of ~1mb, its unlikely the measure will fix existing imbalances. Several weeks ago, it appeared a variety of factors were contributing to oil product shortages brewing in the Northeast. Reduced Russian and Chinese oil product exports led to rising US oil product exports from the Gulf Coast to Europe. Dramatic reductions in refining capacity in the Northeast, left domestic consumers in a bidding war against Europeans for diesel and gasoline. Noting that the Colonial pipeline, an oil product pipeline connecting the Gulf to the Northeast, was running without apportionment for the first time in recent

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White House considers burning "home heating oil" reserve to reduce diesel prices