Michigan gas prices tumble to 10-month low

(MCT) — Gasoline prices in Michigan tumbled to their lowest point in about 10 months, and analysts expect prices to keep falling.

The average price of an unleaded gallon of gasoline fell to $3.27, down 13 cents from a week ago, according to AAA.

In Manistee, it was a similar story. The average price dropped  to $3.26 per gallon.

"Decreased demand, relatively lower crude prices and the cost savings associated with producing winter-blend fuel will likely keep downward pressure on the price for retail gasoline," AAA Michigan said in a statement. "Barring any major disruptions in supply, drivers are expected to see some of the lowest autumn prices since 2010."

The lowest average price in Michigan is $3.14 in the Grand Rapids-Muskegon-Holland region. Marquette has the highest price at $3.49.

The price of crude oil is near about $90, and Bloomberg reported Thursday that betting on the future price of oil hit a 17-month low last week.

Political turmoil in the Middle East has had little effect on gas prices, economists noted.

"Geopolitical events remain front of mind for market watchers, but in recent months have not translated into upward pressure on global oil markets," AAA said.