Gas prices below $3 and falling
Report shows that prices declined to $2.781 as Americans drive less.
NEW YORK (CNNMoney.com) -- Gasoline prices fell overnight, settling to prices not seen since this time last year, a survey for the American Automobile Association showed Friday.
The national average price for a gallon of regular gas fell to $2.781 a gallon, down 4.1 cents from the day before, according to AAA's Daily Fuel Gauge Report. The last time gas was near this price was Oct. 4, 2007 at $2.7789 a gallon.
Today marks the 37th straight day that prices have dropped. Gas is down 32.4%, or $1.33, from the record-high price of $4.114 that AAA reported in mid-July.
The last time the average price for a gallon of regular unleaded gas was near the current price was on Oct. 17, 2007, when gas hit $2.795. On Saturday, the average price dropped below $3 a gallon for the first time in nearly nine months.
Alaska has the most expensive gas in the nation at an average of $3.784 a gallon, while Oklahoma has the cheapest gas at $2.378 a gallon.
Demand for gas is dropping, as Americans drive less and consume less gas compared to last year. In August, Americans drove 5.6% less, marking the biggest single-month decline in miles traveled since the government collected data. Gas consumption for the past four weeks averaged 8.8 million barrels a day, or 4.3% lower, according to the U.S. Department of Energy,
Oil prices fell Friday to their lowest point since May 2007 even as OPEC announced it would cut production by 1.5 million barrels a day starting in November.
U.S. crude for December delivery fell $3.96 to $63.88 a barrel in electronic trading. Oil hit a low of $62.85 after the news of the cut broke at about 5:10 a.m. ET. It was the lowest level for oil prices in more than 17 months. 
