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Northeast Home Heating Oil Reserve -
Guidelines for Release, 2011-12


The Energy Policy and Conservation Act, as amended, sets conditions for the release of the Northeast Home Heating Oil Reserve. The Secretary of Energy has the authority to sell, exchange, or otherwise dispose of petroleum distillate from the Reserve in order to maintain the quality or quantity of the petroleum distillate or to maintain the operational capability of the Reserve. 

Emergency release of the Reserve is at the President's discretion.  The President may make the requisite finding of a "severe energy supply interruption" for the sale of product under two conditions: 

  • if there is "a dislocation in the heating oil market,"
    or
  • a circumstance exists (other than the defined dislocation) that is a regional supply shortage of significant scope and duration and the Reserve's release would significantly reduce its adverse impact.

The law deems a "dislocation" to have occurred only when -

  1. "The price differential between crude oil...and No. 2 heating oil...increases by more than 60% over its five year rolling average for the months of mid-October through March (considered as a heating season average)."

  2. The price differential continues to increase during the most recent week for which price information is available."

To establish a calculation methodology using available data sources, the Energy Information Administration has translated this legal definition of a dislocation into the following observable factors:

  • The price differential between residential No. 2 heating oil in the Northeast and crude oil must be more than 60 percent greater than its 5-year rolling average for that month;

  • The price differential must continue to exceed the 60-percent threshold for two consecutive weekly (Monday) observations (thus satisfying the 7-day requirement in the law); and

  • The price differential must be increasing as of the most recent observation.

The weekly reports for this season to date, and the differential levels required to exceed the 60-percent threshold, are as follows:

(Cents per Gallon, Except Where Noted)

Week

Residential Heating
Oil Price

*Average Brent Crude Oil Spot Price (Previous Week)

Heating
Oil/
Crude
Oil
 Differential 

5-year
Average
 Differential 

Current
vs.
Average
 Differential 

Differential
Required
for
Release

PADD 1x

PADD 1y

Avg.
PADD
1x/1y

dollars
per
barrel

cents
per
gallon

10/03/11

 369.8 

 376.0 

 372.9

 107.69 

 256.40

116.5  

109.1

6.8% 

174.5

10/10/11

366.2 

377.0 

371.6

104.03 

 247.69

123.9  

109.1

13.6% 

174.5

10/17/11

376.0 

386.5 

 381.3

111.59 

265.69

115.6  

109.1

5.9% 

174.5

10/24/11

379.7 

388.0 

383.9

111.47 

265.40

118.4  

109.1

8.6% 

174.5

10/31/11

385.0 

393.1 

389.1

111.33 

265.07

124.0  

109.1

13.6% 

174.5

11/07/11

388.0 

395.1 

391.6

109.84 

261.52

130.0  

113.3

14.7% 

181.4

11/14/11

394.9 

401.2 

398.1

114.68 

273.05

125.0  

113.3

10.3% 

181.4

11/21/11

393.4 

401.5 

397.5

110.69 

263.55

133.9  

113.3

18.1% 

181.4

11/28/11

390.0 

397.6 

393.8

106.66 

253.95

139.8  

113.3

23.4% 

181.4

12/05/11

391.0 

397.0 

394.1

110.05 

262.02

132.0  

116.7

13.1% 

186.7

12/12/11

388.4 

394.9 

391.7

109.31 

260.26

131.4  

116.7

12.6% 

186.7

12/19/11

383.4 

391.8 

387.6

106.26 

 253.00

134.6  

116.7

15.3% 

186.7

12/26/11

384.6 

392.8 

 388.7

107.72 

256.48

132.2  

116.7

13.3% 

186.7

1/02/12

385.9 

 394.0 

390.0

107.51 

255.98

134.0  

121.2

10.6% 

193.9

1/09/12

397.3 

401.6 

399.5

112.51 

267.88

131.6  

121.2

8.6% 

193.9

1/16/12

400.2 

401.9 

401.1

111.78 

266.14

134.9  

121.2

11.3% 

193.9

1/23/12

 398.7 

400.7 

 399.7

109.60 

260.95

138.7  

121.2

14.5% 

193.9

1/30/12

 399.8

 402.2

 401.0

 109.18 

 259.95

        141.0

          121.2

           16.4%

       193.9

2/06/12

402.4 

403.7 

403.1

111.20 

264.76

138.3  

118.8

16.4% 

190.0

2/13/12

408.7 

409.6 

409.2

117.20 

279.05

130.1  

118.8

9.5% 

190.0

2/20/12

410.0 

410.9 

410.5

119.79 

285.21

125.2  

118.8

5.4% 

190.0

2/27/12

417.5 

416.0 

416.8

123.34 

293.67

123.1  

118.8

             3.6% 

201.2

3/05/12

415.6 

414.5 

415.1

124.88 

297.33

117.7  

113.4

3.8% 

181.4

3/12/12

415.6 

415.1 

415.4

126.62 

301.48

113.9  

113.4

  0.4% 

181.4

3/19/12

 415.3

   416.0

  415.7

 126.22

 300.52

        115.1

113.4

             1.5%

181.4

*NOTE:  On 10/31/11, the differentials were changed to compute using Brent crude oil spot prices rather than WTI prices.  Figures have been updated to show the new calculations from the beginning of this heating oil season.
Prior Years:

 Page owner:  Fossil Energy Office of Communications
Page updated on: March 21, 2012 

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