Turmoil on Wall Street has resulted in the lowest price for a barrel of oil since early 2009, according to a recent report by WWLP News. Crude oil closed trading under $40 per barrel several times in recent weeks, as investors worried about the health of the world economy.
Tim Noonan of Noonan Energy in Springfield told WWLP News that the lower prices also have to do with an increase in oil production here in the United States, the report states. "Noonan told the station that customers started locking-in rates for this winter's heating oil back in June. That rate is at $2.49 per gallon, and customers have to buy at least 400 gallons of fuel for that rate.
Noonan told WWLP that rate is about $1.10 per gallon less than last year at this time, and he said it's making oil comparable to natural gas prices.
"It already is more competitive than it was a year ago because of the gas prices haven't dropped as significantly as the oil prices have in the past year," Noonan told the station.
Noonan said he predicts oil prices will stay low over the next several months.
To view the WWLP News report, click here.