Gas prices could dip below $3 a gallon as summer driving season wraps up and oil declines: AAA

• A gallon of gas in the US costs an average of $3.716, AAA data shows.
• A spokesperson for the auto club said prices could fall below $3 a gallon "soon".

The average price of a gallon of gas in the US fell to $3.71 Monday, which is $0.26 lower than four weeks ago but remains $0.54 higher than a year ago, according to AAA data.

The recent decline in oil prices have helped ease sticker shock at the pump. Currently, a gallon of gas is at its cheapest level since early March, and Brent crude is trading at about $94.

Andrew Gross, a spokesperson for AAA, said that typically cheaper oil means more relief for drivers, and that it bodes well for prices in the future.

"This trend has helped pump prices fall steadily for three straight months and, with fall approaching, more markets could soon see prices below $3 per gallon," Gross said Monday, per AAA.

Data from the Energy Information Administration showed gas demand increased from 8.59 million barrels per day to 8.73 million barrels per day last week. At the same time, total domestic gasoline inventories rose by 300,000 barrels to 214.8 million barrels.

Demand could ease further with summer driving season wrapping up after Labor Day, which could also lead to falling pump prices.

Texas currently has the least expensive market, with the average gallon costing $3.14 as of Monday, according to AAA figures.

In a Friday note, Bank of America analysts wrote that the summer-demand surge had increased at the very end of the season, which aligns with the trend of falling gas prices.

With gas continuing to drop, BofA forecasted a near-term bounce in broader consumer spending.

"Lower gas prices also come with some indirect benefits, such as lower airfares and improved consumer confidence," analysts said. "With prices continuing to drop this month - as of this writing the national average of unleaded retail gasoline prices has fallen every single day since June 13 - the consumer should experience a solid tailwind for at least another month."