NEW YORK -- Record gas prices has led AAA to project a drop in travel during Memorial Day weekend.

AAA projected the number of Americans traveling during the Memorial Day holiday will drop slightly compared to 2007. AAA estimates that 37.87 million Americans will travel 50 miles or more from home this holiday, a decrease of nearly 360,000 travelers (0.9 percent) from last year’s total of 38.23 million.

Nearly 31.7 million Americans (83 percent of all holiday travelers) expect to travel by automobile, a 1 percent decrease from the approximately 32 million people who drove a year ago.

Almost 4.35 million -- 11 percent of holiday travelers -- plan to travel via airplane; a decrease of 0.5 percent from the 4.37 million who took to the skies last year. About 1.8 million intend to travel by train, bus or other mode of transportation.

"Many Americans are feeling a financial pinch this holiday weekend from record high gasoline prices and other factors," said AAA President and CEO Robert L. Darbelnet. "Despite the small decrease, we will still see a significant number of people traveling this weekend. More than 12 percent of the U.S. population will be celebrating the Memorial Day weekend away from home."

"Countless businesses large and small across the United States depend on the summer leisure traveler for a large portion of their annual revenue. This spring high gasoline prices appear to be dampening our society's intent to travel," Darbelnet said. "If a trend toward higher gas prices and fewer travelers were to continue, it would eventually harm travel-dependent companies that provide employment opportunities and tax revenues in almost every city and town in America."

AAA on Thursday put the price of gas at a national average of just over $3.77 for a gallon of regular. Premium is a whopping $4.15.

That's about 68 cents a gallon higher than this time last year. The price is expected to climb at least until the Memorial Day weekend.

The Energy Department forecast recently that prices would top out next month at an average of $3.73 a gallon. Many analysts now expect the national average to hit $4 a gallon in the coming weeks.

Regular unleaded gas in Alaska has already cleared that mark at $4.022 per gallon. The next highest is Connecticut, which is at $3.995 per gallon.

Arizona boasts the lowest gas prices in the country at $3.548 per gallon.

Meanwhile, oil prices steadied above $124 a barrel on Thursday.

Crude prices slipped from record highs following a mixed report from the government Wednesday on U.S. petroleum reserves.

The demand for oil, which hit a trading record of $126.98 a barrel on Tuesday, is outpacing the world's capacity to produce it by at least 600,000 barrels a day, according to Energy Information Administration data.