Saudis deny reports of oil output cuts while Britain weighs price cuts to ease glut

Britain may soon lead a new round of oil price cuts by lowering the cost of North Sea crude, according to the Middle East Economic Survey.

The worldwide oil price plunge is good news for American gasoline users. Some analysts were quoted during the weekend as saying the world oil glut would result in price drops of up to five cents a gallon for gasoline and home heating oil in the United States.

Home heating oil prices on the US spot market declined in January for the first time during a winter heating season despite severe winter weather, said Al Bassano of the Oil Buyers' Guide in Lakewood, N.J. Spot heating oil prices, now bringing 87 to 88 cents a gallon in February, could fall as low as 83 cents a gallon in March, Bassano said.