On Saturday, the average gas price in the U.S. will drop below $3 a gallon, snapping the longest streak above that level, according to motor club AAA.
The decline in gas prices is estimated to help consumers save roughly $250 million a day, versus when gas prices were at $3.68 a gallon, providing an added jolt to the economy.
“The drop below $3.00 per gallon is significant because about 40% of American adults believe that gasoline is ‘too high’ when the price reaches that level,” AAA said. Given that sentiment, the dropping price of fuel might prove a big boon for consumer sentiment
Gas prices are expected to continue falling this winter on a combination of lower demand and seasonal trends. A sluggish global economy could also drag prices to $2.90 or lower.
Still, paying more than $3 a gallon for gas is not necessarily a thing of the past with room for gas prices to rebound in the spring, particularly if the global economy turns out to be in better shape than expected, according to AAA.
On the New York Mercantile Exchange Friday, light, sweet crude futures for delivery in December slid 97 cents, or 1.2% to trade at $80.15 a barrel.