The average U.S. retail price for regular unleaded gasoline dropped 2.6 cents the past week to a two-month low of $1.895 a gallon. That price is up 41 cents from the national average the same day a year ago, according to the American Automobile Association. Yet it is the sixth decline since a record of $2.064 on May 24.
Gasoline prices have kept pace with crude-oil futures, which fell to a two-month low last week after the United States returned power to an interim Iraqi government ahead of schedule. The move eased some traders’ concern that terrorists would disrupt the country’s petroleum operations.
Oil rallied in the past week, a signal that gasoline prices may not decline much more, analysts said.
Crude oil, which makes up more than two-fifths of the retail price of gasoline, on reached a five-week high on Tuesday of $39.65 a barrel on the New York Mercantile Exchange, up 22 percent this year.