Heating oil prices cooling down

September 28, 2009 9:02:52 AM PDT
Homeowners who heat with oil were feeling sticker shock just over a year ago as prices soared close to $5 a gallon, but they're breathing easier now. Heating oil prices are barely half what they were in summer 2008. Neil Gamson of the Energy Information Administration says heating oil inventories are above average and hurricane activity hasn't disrupted oil production in the Gulf of Mexico.

The Energy Information Administration projects the average cost of heating oil will go up to $2.71 per gallon this winter. The EIA says about 7 percent of U.S. households are heated primarily by oil.

The EIA says heating costs from natural gas, electric heat and propane are all expected to drop. About 103 million households combined are heated by those sources.

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