Gallon of gas dips below $3

NEW YORK (CNNMoney.com) -- The nationwide average retail price for a gallon of regular gasoline fell to $2.998 Wednesday, according to AAA. Tuesday the price stood at $3.002, according to the motorists' association.

The average price hit a record high of $3.23 a gallon at the end of May and has since fallen roughly 8 percent.

Problems with refinery production levels helped drive the cost of gas up around Memorial Day, even uncoupling it from price of oil that it traditionally tracks, according to Geoff Sundstrom, spokesman for AAA.

"We expect gas numbers to decline as refineries get their act together," Sundstrom said.

"Psychologically, we think it's important for the nation," Sundstrom said of the easing prices that had many households concerned about the record highs in May.

"The fact that we've gone back under $3 is a shot in the arm to the economy," he said, who noted that the instant knowledge of crude and gas futures tends to affect pricing even at the retail level.

"It's a telltale sign that the rally has peaked,"said Stephen Schork, principal of the industry newsletter the Schork Report. "The sell off in crude is impressive and expected. The sell off in gasoline is more impressive."

Shork said the EIA numbers showing refineries running at 87.6 percent capacity should have generated a bullish reaction in gas prices.

"We simply have no ability to make gasoline," Shork said. "If you can't get a bull reaction on a report like this odds are we're in for further weakness in gas prices through the summer."

Shares trended lower Wednesday for major oil producers BP Plc (Charts), Chevron (Charts, Fortune 500), ExxonMobil (Charts, Fortune 500) and ConocoPhillips (Charts, Fortune 500).