NORTHAMPTON, Mass. (WWLP) – Crude oil is below $60 a barrel for the first time since the summer of 2009. The falling price of crude is showing up at both the gas pumps and in people’s home heating expenses.
In fact, not only is oil below $60 a barrel, but it’s been dropping for nearly six months. A drastic difference from June, when oil was nearly $110 a barrel.
The general manager of Richards Fuel in Easthampton told 22News the price drop is good for everyone except the customers who pre-paid and locked in their rate at the start of the season. “You have to remember that people who have pre-paid their oil, generally have done it for a lot of years. Usually when you pre-pay for your oil on a 10 year period, you usually win seven out of those 10 years and when I say win, last year people saved an average of 50 to 75 cents a gallon.”
The price cut is a result of rising global oil production and falling demand as we turn to alternative fuels. The average price for a gallon of gas in this area is $2.69.