MINNEAPOLIS (WCCO) — Oil prices are at a seven-year low. The price of a barrel fell to $37 Monday. That follows OPEC’s decision last week to keep pumping at current levels.
Supply is currently outpacing demand by about a million and a half barrels a day, as Saudi Arabia and other nations continue trying to push higher-cost producers out of the market.READ MORE: 'It's Just A Matter Of Time': Man Severely Hurt In Fiery Crash With Minneapolis Street Racer Fears Repeat
That is driving down gas prices.READ MORE: Why Are We Still Experiencing Supply Chain Issues?
Meanwhile, in Minnesota, the statewide average fell again overnight to $1.96 a gallon, but many stations are even cheaper. A month ago, the average was $2.26 a gallon.
Analysts expect oil to remain relatively cheap well into 2016, and maybe longer.MORE NEWS: Potential Vikings COVID Outbreaks Could Lead To Forfeits, Big Losses For Vendors And Restaurants
Cheap oil also means lower heating bills. The average household using heating oil will spend 1,360 dollars this winter, down nearly $500 dollars from last winter.