Gasoline has fallen more than a dime a gallon since Friday, hitting a national average of $2.92 on Monday, according to auto club AAA, the Oil Price Information Service and Wright Express.

Pump prices have fallen 29 percent from their July record high of $4.11 a gallon and are only 10 cents higher than a year ago. In California, a gallon of gas cost an average of $3.31 on Monday, down from a record high of $4.61 set June 19, according to AAA.

The pullback at the pump comes amid a dramatic turnaround in crude oil prices.

Chakib Khelil, president of the Organization of Petroleum Exporting Countries, said Sunday that members plan to announce a substantial output cut at an extraordinary meeting that begins Friday in Vienna.

Analysts say OPEC countries have been alarmed by falling oil prices and want a production cut to prop up members' national budgets that only months ago were bulging with hundreds of billions in petrodollars.

Khelil, who is also Algeria's energy minister, said OPEC may cut output again at a meeting in December, and that the group considers the oil market oversupplied by about 2 million barrels a day.

Light, sweet crude for November delivery rose $2.40 to settle at $74.25 a barrel on the New York Mercantile Exchange. Crude has fallen about 50 percent from its July 11 high of $147.27.

Americans radically changed their behavior after gasoline prices spiked above $4 over the summer. And there are signs that emerging economies like China have begun to slow.

Analysts say almost any OPEC action has already been priced in by investors.

"The market is factoring in a big cut. It will likely be as much as 2 million barrels," said Mark Pervan, senior commodity strategist with ANZ Bank in Melbourne. "I think they will go pretty large just to change the sentiment."

Last week, news of rising U.S. oil inventories, falling retail sales and slowing housing starts fueled concerns that the world's largest economy may face a major recession that will undermine demand for crude.

"Oil demand in the U.S. will be a bellwether," Pervan said. "If the U.S., Europe and Japan go into a major recession, there's no reason we can't see $35, $40 a barrel."

Chronicle staff writer John Batteiger contributed to this report.

This article appeared on page D - 6 of the San Francisco Chronicle