The average price of heating oil this winter is expected to be $2.75 a gallon, according to a new report from the Energy Information Administration, while natural gas prices are also expected to fall somewhat.
Those using heating oil will enjoy a 13.3 percent price drop, but will still have to pay an average of $1,694 this winter, according to the report.
In contrast, natural gas customers in the U.S. will only pay an average of $889 to heat their homes this winter. This average is even lower for residents of the western United States, who can expect to pay $563.
Gasoline prices are also expected to be much more moderate next year, with an average of $2.37 a gallon.
"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," oil analyst Phil Flynn told the newspaper.
With lower fuel prices, consumers using efficient natural gas furnaces and other modern heating technologies will have an opportunity to further compound their savings over time.
