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.
That is driving down gas prices.
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.
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.