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Falling Demand Drives Energy Prices Lower


Energy prices, including residential heating oil, are expected to remain near or below current levels at least through this winter, says the Energy Information Administration (EIA) of the U.S. Department of Energy in its December "Short Term Energy Outlook."

Residential heating oil prices through the current season are projected to average $2.53 per gallon, a 24% drop from the 2007-2008 season. Residential propane prices are projected to average $2.10 this winter, down 14% from last winter. Residential natural gas prices are also projected lower than last year at $12.56 per thousand cubic feet, a 1.3% drop, according to the report.

The average price of both regular-grade gasoline and diesel fuel on December 8 were $2.00 a gallon below their mid-July highs. The EIA now projects the average 2009 price per gallon to be $2.03 for regular gasoline and $2.47 for diesel.

Click to see the full report here.