The national average gasoline price plummeted 12 cents during the week that
ended Monday, the fastest weekly drop since 2008, AAA reported.
After 11 days of falling gas prices, U.S. drivers paid an average $3.67
per gallon of regular on Monday. That was down from $3.79 a week ago and down
from $3.82 a month ago.
Compared with last year, however, drivers are spending about 20 cents
more per gallon to fill up their tanks. Unrest in key oil-producing nations in
the Middle East has kept crude prices steep during much of the year. Gasoline
has set a daily record high each day for more than two months, according to
AAA.
Fuel typically gets cheaper with the close of the summer vacation season.
This year, the demand decline came as supplies were rebounding. A series of
refinery issues, including closures during Hurricane Isaac and a fire at a
California facility, constrained supplies during summer months and pushed
gasoline prices to record levels.
The combination of falling demand and rising supply this fall has cut the
cost of fuel.
"We're not seeing the same distribution problems we saw during the
summer," AAA spokesman Michael Green said.
Midwestern states have fared particularly well, with gasoline dropping
more than 20 cents over the week. The price decline has been less dramatic for
Houstonians, who are paying an average $3.43, down 8 cents from a week
earlier.
AAA expects the fuel price will continue to ease, dropping as low as
$3.25 by Thanksgiving.
Crude oil futures settled at $88.73 a barrel Monday, a three-week low, as
TransCanada is expected to soon restart its Keystone pipeline, the Associated
Press reported. The pipeline was shut Wednesday after tests showed safety
issues.
