The national average for regular unleaded plunges 15 cents this week to $3.48, while Oregon's average drops another 9 cents to $3.49. Both are at their lowest points since mid-April, according to AAA Oregon Public Affairs Director Marie Dodds.

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Dodd predicted pump prices would continue to drop with our national average falling to near $3.00 a gallon before Thanksgiving.

More: Portland Gas Prices

"The slowing economy means investors expect demand for crude oil and fuel to decline in the coming weeks and months, which is one reason why crude oil and gas prices are dropping," said Dodd.

Crude oil fell to its lowest point in eight months this week, closing near $88 per barrel Monday. That's about 40% lower than the record high of $147 set on July 11.

Despite the lower prices at the pumps, Oregonians were still paying about 60 to 75 cents more per gallon than we were a year ago. The national average was $2.77 last year, while Oregon's average was $2.86.

Oregon's gas prices are 21st highest in the nation, up from 31st last week.