Oil, gas prices hit 3-year low

COLUMBUS, Ohio --- Oil and retail gasoline prices dipped to three-year lows Tuesday.


Analysts believe prices at the pump could finally be bottoming out after a precipitous decline from record highs this summer, though demand could fall even further in January with job losses reducing the number of people who drive to work.

Gas prices fell for the 20th week and hit $1.811 per gallon, according to the government's Energy Information Agency.

AAA, the Oil Price Information Service and Wright Express said prices fell 0.8 cents overnight to $1.812, down 62.4 cents in the past month and $1.249 in the past year.

Prices in some areas were much lower. On GasBuddy.com, where motorists post gas prices, a BP station in Independence, Mo., was selling fuel for $1.29 per gallon.

Tom Kloza, the publisher and chief oil analyst at the Oil Price Information Service, said prices might fall a few more cents this month and then likely waver into February before beginning to move higher.

Light, sweet crude for January delivery fell more than 4 percent, or $2.32 to settle at $46.96 a barrel on the New York Mercantile Exchange.