The start of a Sunni-led insurgency in Iraq last month pushed the national average price to $3.70, though prices spiked closer to $4.00 in some retail markets.
"Market watchers are keeping a close eye on the situation, but the risk premium that had pushed oil prices to 2014 highs has subsided in recent trading sessions," AAA said in a Monday briefing. "These elevated oil prices have meant stubbornly high pump prices for motorists, but as oil prices have eased retail gas prices have finally started to follow suit."
By Monday, the average retail price for a gallon of regular unleaded gasoline had fallen for 10 straight days. Gas prices Sunday marked the first time since June 11 the national average price per gallon was lower month-on-month.
Gas prices, however, typically slide during this time of year. AAA reports the national average price of $3.65 for Tuesday is the highest since 2008 for the season by a penny.