WASHINGTON, Jan. 13 (UPI) -- Prices for crude oil and gasoline are in a "free fall," suggesting it would take a major market event for U.S. gas prices to go up, a AAA spokesman said.
The motor club reports a national average price Tuesday at $2.11 for a gallon of regular unleaded gasoline, about 8 cents less than last week and $1.20 less than this date in 2014.
The price of oil, down more than half from June, accounts for about 60 percent of the price at the pump. West Texas Intermediate and Brent, the U.S. and international price benchmarks, respectively, were each down more than 3.5 percent from the previous session in early trading Tuesday.
Operations at BP's refinery in Whiting, Ind., are reduced because of a regional cold snap. Husky Energy, meanwhile, said its refinery in Lima, Ohio, will be shut for about a week following a recent fire.
Michael Green, a spokesman for AAA, said markets haven't reacted to issues in a region with historically volatile gasoline prices.
"Overall, both crude and wholesale prices nationwide are in free fall and gasoline supplies in the Midwest are more than abundant," he said in response to email questions. "From a fundamentals standpoint, it should take more than these relatively small events to have a major impact on the market given the environment. "
More than 30 percent of U.S. states are reporting an average price at the pump below the $2 mark. The national average price has fallen for 110 consecutive days.
While the decline in oil and gasoline prices is welcome news for U.S. consumers, AAA said the market slump is a growing concern for the industry.
"In countries like the United States where the cost of oil extraction is more expensive, producers may be forced to reassess their plans to factor in profit margins that are sharply lower or even reversed as markets continue to register multi-year lows," spokesman Avery Ash said in a separate statement.
