Pump prices are likely to continue declining for several weeks, the federal U.S. Energy Information Administration said Thursday.
The EIA projected a national average of below $3 per gallon for the first time since December 2010. Gasoline cost on average $3.06 a gallon to start the week, the EIA said, though some regions are paying less — the Gulf Coast, for example, is getting its gas for about $2.83 per gallon.
Plummeting prices for crude oil are largely responsible for cheaper gasoline, EIA noted. Brent crude, an international benchmark, has averaged $88 per barrel this month after falling from $112 in June.
EIA said Brent prices have fallen for a number of reasons: Weak global demand, booming U.S. production, unanticipated supplies from Libya and Iraq, and Saudi Arabia’s decision to keep up production of oil instead of cutting back.
