Winter Oil Heating Costs to Fall

Demand and energy prices continue to fall
By Peter Fearon,  Newser Staff
Posted Nov 13, 2008 1:51 AM CST
Home heating oil is delivered to a home in North Andover, Mass. Americans will pay 13% less to heat their homes with oil this winter.   (AP Photo/Mary Schwalm)
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(Newser) – The cost of heating an American home with oil this winter will fall 13%, according to government price forecasts released yesterday. The average heating bill for a typical winter for oil customers will be just under $1,700, reports USA Today. But those who use natural gas for heating—who make up about half of American households—are expected to pay 3.6% more, or an average of $889,

The price of gasoline will likely stay low through 2009, selling at an average of $2.37 a gallon, according to the new estimates. The economic slowdown will push US oil demand down this year by more than a million barrels a day for the first time since 1980. "World demand growth may be negative for the first time in years, which is a shock to a lot of the bulls who never thought this could happen," said an oil analyst.