U.S. Gas Prices Fall Below $4 a Gallon for First Time Since July
The national average for regular gasoline fell to $3.98 a gallon on Tuesday, the first reading below $4 since July 20, as lower oil prices and weaker seasonal demand pulled pump prices down across the country.
The national average price of regular gasoline fell below $4 a gallon on Tuesday, reaching $3.9788, according to AAA. It was the first time the average had crossed under that mark since July 20.
The drop extends a slide that began in late September. AAA put the average at $4.1493 a week ago and $4.3669 a month ago. A year ago, the national average was $3.0707. A week ago, on Election Day, the national average stood at $4.14 a gallon.
Diesel stays high as gasoline falls
Diesel has not followed gasoline down. AAA recorded a national diesel average of $6.1572 on Tuesday, compared with $3.7389 a year ago. Fuel exports from the Middle East remain well below pre-war levels, according to OilPrice.com, keeping diesel tight even as crude prices ease.
More declines expected before Thanksgiving
Analysts expect the average to keep falling. Patrick De Haan, head of petroleum analysis at GasBuddy, said late Monday that the national average could reach $3.70 a gallon by Thanksgiving, and that prices below $3 a gallon were already appearing at stations in Indiana, Ohio, Georgia, North Carolina, Texas, Oklahoma and Louisiana. AAA says prices typically fall 10 to 30 cents a gallon in the winter months.
Oil prices have dropped in recent days as traders bet that the latest diplomatic push could produce an agreement between the United States and Iran. Brent crude, the global benchmark, traded below $90 a barrel on Tuesday. De Haan said prices had fallen almost every week since peaking at $4.494 a gallon on September 24, and could keep falling for at least another week or two, though geopolitical events could still push them back up.
Reporting based on coverage by OilPrice.com, NBC News, AAA and GasBuddy.
