Gas Dips Below $2.50

UNDATED (AP) -- The average retail price for gasoline dipped below $2.50 a gallon for the first time in two months Monday.

Rising oil supplies and slumping demand overshadowed news of a fire at a major U.S. refinery.

Friday's fire at a Tesoro refinery in Los Angeles is seen leading to some higher pump prices in California, but an analyst says the effect is muted elsewhere.

Auto club AAA says the average price for a gallon of regular gasoline fell a half a penny overnight to just under $2.50.

That's 11 cents less than a month ago, and nearly $1.16 below what drivers were paying at this time last year.

Benchmark crude for November delivery rose 82 cents to settle at $66.84 a barrel.

Price were little changed in Asian trading Tuesday, up 2 cents.

©2009 Associated Press. All rights reserved. This material may not be published, rewritten, or redistributed.