Gas prices low despite geopolitical tensions

WASHINGTON, Aug. 26 (UPI) -- While geopolitical tensions are high, the impact on international oil markets is minimal and gas prices in the United States keep moving lower, AAA said.

Days before the Labor Day holiday in the United States motorists are paying some of the lowest gasoline prices on record. Tuesday's national average price for a gallon of regular unleaded gasoline was $3.43, about 10 cents less than the same time in July.

AAA said the price for gas is the lowest it's been since February and likely the lowest for this date in four years. The motor club said the most recent low-water mark for the last week in August was $2.70 per gallon in 2010, which would be $2.95 in today's dollars.

AAA said the steady decline in U.S. gasoline prices comes amid rising tensions overseas, particularly in Iraq, where the terrorist group now known as the Islamic State is a growing security concern.

The White House in mid-August carried out airstrikes against terrorist targets in Iraq and continues to weigh its options to counter the threat. AAA said usually tensions like these cause oil prices, and subsequently gasoline prices, to rise.

"In recent weeks, oil markets have largely shrugged off reports of violence and tensions overseas and have instead moved steadily lower as analysts have assessed the potential for a disruption in oil supplies to be limited," it said in a Monday brief.

For Tuesday, West Texas Intermediate crude oil, the U.S. benchmark, traded at $93.35 per barrel. Brent, the global benchmark, traded at $102.65.