The Tennessee gas price average continues to decline and has dropped two cents over last week. The Tennessee Gas Price average is now $1.85 which is nine cents less than one month ago and nearly 51 cents less than one year ago.
Tennessee’s state gas price average has declined the past 27 consecutive days for a total discount of nine cents. The average price in Coffee County is $1.82. The average national price is $2.11.
“With an increase in COVID-19 infections, both locally and across the nation, gasoline demand is positioned to weaken, though its not likely to drop as low as we saw in March and April,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “That translates to a continuation of cheaper gas prices at the pump.”
· 92% of Tennessee gas stations have prices below $2.00
· The lowest 10% of pump prices are $1.61 for regular unleaded
· The highest 10% of pump prices are $2.18 for regular unleaded
· Tennessee remains the 9th least expensive market in the nation
National Gas Prices
The national gas price average pushed a penny cheaper on the week to $2.11 following an increase in gasoline stocks and a dip in demand. Stocks added 1.5 million bbl to total 227.6 million bbl, in the Energy Information Administration’s latest report, while demand decreased to 8.3 million b/d.
While crude oil prices rallied on the week, up from a four month low of $35/bbl to as high as $39/bbl, they remain extremely inexpensive. This is a dominant factor, along with low demand, contributing to the cheaper prices seen at pumps around the country.
At $2.11, today’s national average is seven cents cheaper than last month and 51 cents less expensive than last year.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by $1.65 to settle at $37.14. Domestic crude prices fell due to market concern about increasing coronavirus infections worldwide, which will lower crude demand as countries impose more restrictions that will reduce oil consumption. The drop in crude prices occurred despite EIA’s weekly report showing that total domestic crude inventories declined by 8 million bbl to 484.4 million bbl. As demand concerns continue to weigh on the market this week, crude prices will likely continue to decrease.