By Colin Bird on October 3, 2011
National gas prices continue to fall because of more evidence of a weakening economy and increased stability of international oil sources.
The national average gas price now stands at $3.42 a gallon, according to AAA. That’s a drop of about 7 cents from last week and a 24-cent drop since last month. Last week was the first time in seven months that average gas prices were below $3.50 a gallon. Even so, prices remain 70 cents higher than a year ago. Diesel prices are down, too, at $3.82 a gallon, an 8-cent drop from a month ago.
Prices continue to fall as more reports show weakening of the U.S. and global economies. There’s also new evidence this week of weakened consumer spending in America and Europe and a decrease in manufacturing in China, according to AAA. Increases in the oil supply also help explain the story: Nigeria and Angola have seen robust increases in oil production, according to the U.S. Energy Information Administration. West Africa is an important source for the U.S. oil supply, and the increase has helped offset decreases in supply from Libya, Syria and Yemen.