Southfield (WWJ) -- (CBS/ AP) Gas prices are now at a national average of $3.97 cents per gallon, dropping below the four dollar mark for the first time in weeks. CBS Evening News correspondent Priya David reports on what this price drop means, and if it will last.
The price of crude oil hit its record high of $147 a barrel on July 11.
Less than a week later, the price of gasoline followed to an all time national average high of $4.11 a gallon. But since then, the price of a barrel of crude dropped to $123 on July 25, and gas has dropped fourteen cents to $3.97.
In Metro Detroit prices were as low as $3.72 in some locations. A gallon of unleaded gas was $3.75 at Inkster and Six Mile in Livonia. AAA Michigan was to release its weekly Fuel Gauge Report on Monday morning.
According to the Department of Energy, Americans used almost two-and-a-half percent less fuel over the past four weeks than they did a year ago. The AAA says that drop in demand is one reason for lower gas prices - another is the cool down on Wall Street.
"Because of speculation in the crude oil market by people that would never take delivery of a drop of crude, we saw prices going higher," said Robert Sinclair, Jr. with the AAA. "So the correction that a lot of analysts were talking about - it looks like that is what we are seeing - and it's being reflected at the pump."
The average price of regular gasoline at self-serve stations was $3.996 a gallon Friday. Mid-grade was $4.13 a gallon and premium went for $4.24. That's according to the Lundberg Survey of 7,000 gas stations nationwide, released Sunday.
Prices are at their lowest level since May 16 and are an average of 11.7 cents less per gallon than two weeks ago.
Still, the survey showed the average U.S. price for gas is $1.11 higher than it was a year ago.
Diesel was at $4.80.
The cheapest gas was in Wichita, Kan., where the price for regular was $3.61 a gallon.
Anchorage ranked the nation's highest: $4.43 a gallon for regular.
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