Gas Prices for Labor Day Cheapest in Four Years

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The slide in the price of global crude oil during the late summer has pushed the cost of gasoline in the U.S. to its lowest level at Labor Day since 2010.

Even better, the prices likely will continue dropping and reach lows for 2014 during mid autumn.

Nationally, the average cost for one gallon of regular gasoline is $3.41, which is 18 cents lower than Labor Day in 2013 and 42 cents lower than the record high average of $3.83 for Labor Day weekend in 2012.

The energy markets are shrugging off the tension in the conflict between Ukraine and Russia and across the Middle East, as well as the minor supply disruptions that take place during the normal peak driving season of summer.

However, with the demand now at a low of seven years and daily oil production in North America at highs of five decades, the risks geopolitically around the world have had less impact on the price of oil.

Even the news of a drop that was larger than expected in supplies of oil has had little effect.

On Wednesday, the Energy Information Administration said stockpiles of crude oil dropped last week to 360.5 million barrels, which is the lowest it has been since January of 2014.

However, benchmark crude oil was selling at $93.88 per barrel late Wednesday, down from a peak in June of $106 per barrel.

Brent crude, which was at its highest at $115.74, is currently trading at $102.65.

The prices at the pump should continue falling through the early part of November, when they could possibly reach $3.25 per gallon, according to an online oil analyst.

Eleven U.S. states – New Jersey, Missouri, Virginia, Tennessee, South Carolina, Alabama, Mississippi, Texas, Oklahoma, Louisiana and Arkansas – are close to or even below the per gallon price of $3.25.

Currently South Carolina has the lowest average gallon price in the nation of $3.15, with the highest being Hawaii at $4.31.

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