Gas down 4 cents from last month; prices expected to be rocky

The average price of a gallon of regular unleaded gasoline in Utah dropped 4 cents in the past month, but that doesn't necessarily mean gas prices will continue to fall.

On Tuesday, the average cost was $2.61, down from $2.65 on July 14, according to AAA Utah.

Last year at this time, the average price was $4.11 — $1.50 higher than the current average.

Between this last year and this year, the economy fell into a recession and global demand for oil decreased, which caused gas prices to also decrease, AAA spokeswoman Rolayne Fairclough said.

However, the economy has started to climb out of recession. Oil traders are more optimistic, especially since last week's news that manufacturing in China is increasing. More investors are purchasing oil. That's causing gas prices to vacillate.

AAA analysts believe gas prices will continue to ride up and down with economic news and fluctuation of the dollar. Oil is traded in U.S. dollars. A weak dollar causes oil prices to increase, Fairclough said.

Nationally, the average gallon of regular unleaded was $2.64, 12 cents higher than in July. Among the lower 48 states, California's average gas price is the highest, at $3.20 a gallon.

"Barring unforeseen events, retail gasoline prices should mimic the stability of oil prices in the short term, with the national average staying around or slightly above $2.50 per gallon," Fairclough said.

On the New York Mercantile Exchange, light, sweet crude for September delivery fell $1.15 to settle at $69.45 a barrel. In London, Brent crude prices fell $1.04 to settle at $72.46 a barrel on the ICE Futures exchange. Prices fell after release of a U.S. Department of Labor report that suggested consumer spending may be depressed for some time as companies cut back.

Contributing: Associated Press

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