Tennessee gas prices surged, on average, 23 cents over last week. Pump prices have, yet again, reached record highs across the state. The Tennessee Gas Price average is now $4.50 which is nearly 50 cents more expensive than one month ago and $1.62 more than one year ago.
The average price per gallon in Coffee County is $4.43. That is 7 cents below the state averages and 43 cents below the national average of $4.86.
“We’re once again experiencing record high prices at the pump in Tennessee,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “One silver lining for Tennesseans is that despite the recent spike in prices, Tennessee is currently the 9th least expensive market in the nation. Another round of increases at the pump is likely this week as volatile crude oil prices alongside growing demand and tightening supplies continue to affect the market.”
· 60% of Tennessee gas stations have prices below $4.50
· The lowest 10% of pump prices are $4.31 for regular unleaded
· The highest 10% of pump prices are $4.77 for regular unleaded
· Tennessee is the 9th least expensive market in the nation
National Gas Prices
The cost of a barrel of oil is nearing $120, nearly double from last August, as increased oil demand outpaces the tight global supply. Meanwhile, domestic gasoline demand rose last week in the wake of a robust Memorial Day weekend of travel. As a result, the national average for a gallon of gas surged 25 cents in one week to hit $4.86.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 700,000 bbl to 219 million bbl last week. Meanwhile, gasoline demand grew from 8.8 million b/d to 8.98 million b/d as drivers fueled up for Memorial Day weekend travel. These supply and demand dynamics have contributed to rising pump prices. Coupled with volatile crude oil prices, pump prices will likely remain elevated as long as demand grows and supply remains tight.
Today’s national average for a gallon of gas is $4.86, which is 59 cents more than a month ago, and $1.81 more than a year ago.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by $2 to settle at $118.87. Crude prices rose last week after OPEC+ announced it would increase monthly production to 648,000 b/d in July and August instead of 400,000 b/d as previously planned. However, the market is still concerned that supply could remain tight as the European Union works to implement a 90 percent ban on Russian oil imports by the end of this year. Additionally, prices were boosted after EIA reported that total domestic stocks decreased by 5.1 million bbl to 414.7 million bbl. The current storage level is approximately 13.5 percent lower than a year ago, contributing to rising crude prices. For this week, crude prices could rise again if EIA’s next report shows another decrease in total domestic stocks.