The average price for a gallon of regular unleaded gasoline in the United States started the week at the lowest level of the year, motor club AAA reports.
AAA reports a national average price Tuesday at $3.18 per gallon. That's nearly 2 full cents less than the Monday price, which was the low mark for 2014 and the lowest average price for the federal Columbus Day holiday in four years.
The motor club said low demand and high production means crude oil prices are plummeting. The average price for the 12 crude oil blends from members of the Organization of Petroleum Exporting Countries was $85.93 for Tuesday, down $9.75 from one month ago.
Declines in crude oil prices typically translate to lower prices at the pump.
"Additionally, while violence continues in Iraq, market watchers still assess the threat to oil production to be relatively limited," the motor club said in a Monday report.
Gasoline prices also start falling in mid-September, when refineries in the United States start making a winter blend of gasoline, which is cheaper to produce.
AAA said $3 per gallon could become commonplace by the end of the year. Six U.S. states reported a state average price Tuesday below the $3 per gallon mark.
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