WASHINGTON, Nov. 4 (UPI) -- The substantial increase in U.S. oil production is expected to offset any concerns about instability in foreign producers and keep gas prices low, AAA said.
AAA reported a national average price for a gallon of gasoline Tuesday of $2.97, down 33 cents from one month ago. Nearly half of all U.S. states are recording average prices below the $3 mark, the first time that's happened in nearly four years.
The motor club said in a weekly price report the price at the time is a reflection of a North American oil market able to provide a buffer against violence in Iraq and Eastern Europe.
"Abundant global oil production, particularly the substantial increases to U.S. production, continues to outweigh any concerns of possible supply disruptions due to geopolitical instability," its Monday market report said.
The U.S. Energy Information Administration said most of the price of gasoline is driven by Brent crude oil prices, the global benchmark. For Tuesday, Brent shed more than $2 per barrel, which should translate to lower prices at the pump if the downward trend is extended.
In its monthly market report for October, EIA said the yearly average price for a gallon of gasoline should end 2014 at $3.45, about 6 cents less than last year. The yearly average price for 2015 is projected at $3.38.
Gasoline prices generally decline after September when the summer driving season ends and refineries switch to a winter blend of gasoline, which is less expensive to produce.