National gasoline prices have fallen for 88 consecutive days, breaking a U.S. record, according to the AAA motor club.
A gallon of gas averaged $2.39 on Monday, the lowest level since May 2009. Gas prices have declined every day since Sept. 25, and motorists in only Alaska and Hawaii currently pay more than $3 per gallon.
Analysts have said the falling prices are acting as a stimulus for U.S. drivers, with the U.S. Energy Information Administration saying the average household will pocket an additional $550 next year.
Low pump prices are a reflection of global oversupply of oil — chiefly from surging U.S. production and a decision by the Organization of Petroleum Exporting Countries not to cut supply — along with sagging demand. While U.S. drivers have benefited, the tumbling oil prices have created worry for financial markets and could slow the growth of U.S. oil production.
“Although crude oil prices have seen dramatic price swings in recent years, this year’s plummet has been even more extreme and has triggered speculation surrounding the impact of sustained low prices for crude. Tumbling global prices have the potential to impact supply by slowing production in higher cost regions, which includes the United States,” AAA said.
