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Labor Day gas prices cheapest since 2010

Luke Sharrett | Bloomberg | Getty Images

The late summer slide in global crude oil prices will push the cost of U.S. gasoline to its lowest Labor Day level since 2010. Better yet: prices are likely to continue dropping to 2014 lows by mid-autumn.

Nationally, regular, unleaded gasoline will average $3.41 a gallon—18 cents cheaper than 2013's Labor Day weekend and 42 cents a gallon less than the record $3.83 average for the 2012 holiday weekend.

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The energy markets have shrugged off tensions in the Middle East, the Ukraine-Russia conflict and minor supply disruptions during normal peak summer driving season.

But with demand now at seven-year lows and daily North American oil production at 8.46 million barrels—a five-decade high—geopolitical risks are having less impact on oil prices.

Benchmark West Texas crude oil currently trades at $93.69 a barrel, down from a June $106 peak. Brent crude oil, which peaked at $115.75, is now $102.54 a barrel.

Pump prices should continue sliding through early November, when they could average $3.25, according to gasbuddy.com oil analysts Tom Kloza and Patrick DeHaan.

Read MoreRoad trip? Where sliding gas prices are lowest

Eleven states; Missouri, New Jersey, Virginia, South Carolina, Tennessee, Mississippi, Alabama, Arkansas, Louisiana, Oklahoma and Texas, are close or below $3.25 a gallon now.

—By Gary Strauss, USA Today

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