White House officials told CNBC’s Kayla Tausche about a new plan to call on members of Congress to increase heating oil supplies this winter.
“As we just reported, the White House is considering calling on Congress to double a cap on heating oil storage to build up reserves over the winter, sources tell me,” Tausche tweeted Wednesday morning.
“US officials also weighing future SPR drawdowns in the new year if prices spike post-embargo/price cap.”
NEW: As we just reported, the @whitehouse is considering calling on Congress to double a cap on heating oil storage to build up reserves over the winter, sources tell me.
US officials also weighing future SPR drawdowns in the new year if prices spike post-embargo/price cap https://t.co/dII9Pi1owu
— Kayla Tausche (@kaylatausche) November 30, 2022
The proposal comes as a significant supply crunch of heating oil has hit the Northeast and driven prices to levels unbearable for many households. Last week, Reuters reported the White House was mulling over a plan to increase inventories in the Northeast Home Heating Oil Reserve.
Two sources told Reuters the plan could “involve directing revenue from future crude oil sales of the Strategic Petroleum Reserve to purchase heating oil for the northeast reserves.”
There was no further explanation by Tausche on what exactly “double a cap on heating oil storage” means.
Readers have been well informed about the diesel crunch hitting US markets and the world.
“Within months, almost every region on the planet will face a danger of a diesel shortage just as supply crunches in nearly all the world’s markets have worsened inflation and hurt growth,” Bloomberg wrote last week.
And now it appears anti-fossil fuel Biden administration is scrambling for heating oil and diesel as supplies are expected to tighten as the cold season finally arrives.