WASHINGTON, Dec. 30 (UPI) -- Perceived oversupply in the oil market is bringing relief to U.S. drivers, but may have negative effects elsewhere in the global market, motor club AAA said.
AAA reports a retail national average price of $2.27 for a gallon of regular unleaded gasoline. That's down about 50 cents, or 18 percent, from one month ago and $1.04, or 31 percent, from this date in 2013.
Two states, Missouri and Oklahoma, are reporting a state average price per gallon below the $2 mark.
The low price at the pump is a reflection of the low price of oil, which for the global benchmark Brent is down close to 50 percent from its yearly peak in mid June.
"The global oil market remains in a state of perceived oversupply due to record production from the United States combined with lower than expected global demand," the motor club said in its weekly gasoline market report.
For U.S. drivers, the savings at the pump amount to about $500 million per day when compared against higher seasonal prices earlier this year.
Elsewhere, however, the situation may not be as beneficial. Russia's economy is teetering on the brink of recession because of the compound strains of low oil prices and sanctions imposed by Western governments in response to the Kremlin's posture on Ukraine.
"The ripple effects of prolonged low oil prices could also pose a challenge to countries whose economic stability is dependent on revenue from oil production," AAA said. "As has been the case in recent years in Egypt, Libya and Iran, this sort of geopolitical unrest can impact global supply and pressure oil prices higher on the threat of a disruption."