By Katie Northcott, News Director
According to the American Automobile Association (AAA), the average price of gas in Tennessee fell 18 cents, last week.
Find more details in the press release below:
Gas prices across the state steadily declined again last week, falling 18 cents, on average. The Tennessee Gas Price average is now $3.75 which is 45 cents less expensive than one month ago but $1.05 more expensive than one year ago.
“Tennessee drivers are continuing to see a much needed break in pump prices,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “There is still a lot of uncertainty and volatility in the oil market, but if we continue to see crude oil prices stay low, it’s likely that we’ll continue to lower prices at the gas pump.”
National Gas Prices
The national average for a gallon of regular gasoline is down 16 cents since last week to $4.16. Pump prices are cooling off as the price of crude oil remains below $100 per barrel. Drivers will take all the relief they can get as they embark on summer road trips. But uncertainty lingers over when the Strait of Hormuz will fully reopen and resume traffic. That unknown means oil prices will likely not decrease dramatically as summertime gasoline demand starts going up.
According to new data from the Energy Information Administration (EIA), gasoline demand decreased last week from 9.25 million b/d to 8.59 million. Total domestic gasoline supply increased from 211.6 million barrels to 215 million. Gasoline production decreased last week, averaging 9.4 million barrels per day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI rose $2.26 to settle at $96.02 a barrel. The EIA reports crude oil inventories decreased by 8 million barrels from the previous week. At 433.7 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets – Memphis ($3.86), Nashville ($3.77), Johnson City ($3.76)
- Least expensive metro markets – Chattanooga ($3.46), Clarksville ($3.54), Cleveland ($3.65)
