Dec 6 Reuters U.S. gasoline prices are the lowest they have been since January and by Christmas could fall below 3 a gallon for the first time since 2021, analysts said, which should boost consumer confidence during the holiday shopping season.

The national average price for a gallon of gasoline stood at 3.23 on Tuesday, down 15 since midSeptember, data from the motorist group AAA showed. Lower pump prices have given American consumers some relief from inflation and left more cash for discretionary spending.

Gas prices being down this year has allowed me to invest more into my small business than I could last year, said Macey Ropes, a tiedye clothing store owner in Lafayette, Indiana.

Tamer fuel bills have also helped her set aside money for personal shopping and travel around the holidays, she said.

Gasoline prices averaged 3.008 a gallon in Indiana on Tuesday, almost half a dollar cheaper than last year.

Prices have softened with benchmark global oil prices, which settled on Tuesday at their lowest since July as traders worried about China39;s economy. Oil prices have fallen despite fresh oil supply cuts announced on Thursday by OPEC, the Organization of the Petroleum Exporting Countries and its allies.

Global oil supplies are less strained than they were in the months following the start of the war in Ukraine.

The cost of crude is the biggest component in retail gasoline pricing. U.S. West Texas Intermediate crude futures settled at 72.32 a barrel on Tuesday,…