Government forecasts lower heating costs

The government has some good news for homeowners heating with oil. The Energy Department is lowering its projections for winter heating costs because of a dramatic drop in crude oil demand and prices.
   
A report by the department’s Energy Information Administrationsays a worldwide economic slowdown will help global oil demand to fall for two consecutive years—the first time that’s happened in 30 years.
   
The agency says it expects crude oil prices to average $51 a barrel next year, about a third of this year’s peak price of $147, and slightly more than the current price of just under $43 a barrel. It also reported that the economic slowdown has caused Americans to use about 1.2 million barrels a day less this year
than they did last year.
   
Home heating oil this winter is averaging $2.53 a gallon—about a fourth less than last winter. Heating with natural gas is expected to average about $860 this winter, which is about the same as last winter.