The national average price for a gallon of gas is dropping, with Tuesday's national average at $3.137, according to AAA.
That's 9 cents lower than last week's average, which makes this week's price the lowest point in the year. The decline comes as the cost for oil struggles to remain above $70 a barrel, an AAA report published last week said. About the same time, OPEC+ announced voluntary production cuts for about 2 million barrels a day.
"Historically, crude oil tends to drop nearly 30% from late September into early winter with gasoline prices trailing the play," AAA spokesperson Andrew Gross said in the report issued Dec. 7. "More than half of all U.S. fuel locations have gasoline below $3 per gallon. By the end of the year, the national average may dip that low as well."
Experts expect the downward trend to continue because of an expected 7% cut in gas consumption this winter as a warmer winter brought by the El Niño weather pattern cuts demand for heat.
Global prices on steady decline due to higher production
Gas prices are also down globally because of an increase in gas production despite a lower demand.
OPEC+ has announced that it will cut oil supply during the first quarter of 2024 to support oil prices. But portfolio investors remain skeptical about OPEC+ countries making further cuts to boost prices,according to Reuters.
Energy research firm FGE forecasts that OPEC+ will tighten its grip on next year's market and ramp up production in the second half of 2024, Insider reported.
Gas prices 2024:Will next year be 'normal' for gas prices? And does that mean you'll pay less at the pump?
Which states have the lowest gas prices?
According to AAA, these states have the cheapest average gas prices as of Tuesday:
- Texas ($2.60)
- Mississippi ($2.70)
- Oklahoma ($2.68)
- Missouri ($2.70)
- Louisiana ($2.71)
- Arkansas ($2.72)
- Kansas ($2.79)
- Alabama ($2.79)
- Tennessee ($2.79)
- Ohio ($2.80)
Which states have the highest gas prices?
According to AAA, the states that have the highest average gas prices for a gallon of regular are, as of Tuesday:
- California ($4.70)
- Hawaii ($4.70)
- Washington ($4.260)
- Nevada ($4.020)
- Oregon ($3.99)
- Alaska ($3.81)
- Pennsylvania ($3.49)
- New York ($3.47)
- Idaho ($3.43)
- Vermont ($3.41)
Which states had the largest declines?
According to AAA, the states that have seen the largest gas price decreases as of Dec. 7:
- Colorado (−12 cents)
- Utah (−11 cents)
- Idaho (−11 cents)
- California (−10 cents)
- Florida (−10 cents)
- Indiana (−10 cents)
- New Mexico (−9 cents)
- Arizona (−8 cents)
- Kentucky (−8 cents)
- Nevada (−8 cents)
Contributing: Juan Carlos Castillo, USA TODAY Network
