Oil Falls As Gas Prices Hit 3-Year Low

[Purveyor]

(12-02) 10:39 PST Columbus, Ohio (AP) --

Oil prices dipped again Tuesday and gas prices hit their lowest levels since January 2005 with the United States officially in a recession.

Analysts say prices at the pump may be bottoming out, 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 since the July 4th holiday and hit $1.811 per gallon, according to the government's Energy Information Agency.

Auto club 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 parts of the country were much lower. On the Web site GasBuddy.com, where motorists post gas prices, a BP station in Independence, Mo., outside Kansas City, was selling fuel for $1.29 per gallon.

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AP: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/11/30/financial/f195751S08.DTL