Fewer jobs, fewer factory orders and slowing construction have added up to a severe drop-off in energy use, sending crude prices plunging.

"People are waking up to the fact that there may not be much demand," said Phil Flynn, an analyst at Alaron Trading Corp.

Prices at the pump continued to decline, falling 1.4 cents overnight to $1.79, according to auto club AAA, the Oil Price Information Service and Wright Express. That price is down 60 cents from just last month.

The average price in Alaska, $2.74 a gallon, remained the nation's highest. Alaska is one of only three states remaining where the average is above $2. The Alaska average has fallen 73 cents in the past month.

The average price in Anchorage was $2.58 a gallon Thursday, down 61 cents in the past month.

"We have entered a new era of lower gasoline prices and oil prices," he said.