Gas prices across Tennessee have reversed course and are trending more expensive. Tennessee gas prices, on average, rose five cents over last week. The Tennessee Gas Price average is now $3.90 which is eight cents less expensive than one month ago and nearly $1.21 more than one year ago.
The average price in Coffee County is $3.79, which is 11 cents below the state average – a slightly larger margin than last week when the local price was 10 cents below the state average. The price in Coffee County is 40 cents below the national average of $4.19.
“Global supply concerns are keeping upward pressure on oil prices, and as a result, we’re once again seeing increases in our pump prices” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “It’s difficult to say how long this trend will continue as the oil market remains extremely volatile. It is, however, very likely that pump prices will continue to fluctuate as we head into the summer driving season.”
· 89% of Tennessee gas stations have prices below $4.00
· The lowest 10% of pump prices are $3.71 for regular unleaded
· The highest 10% of pump prices are $4.20 for regular unleaded
National Gas Prices
Pump prices rose again over the past week due primarily to the high cost of crude oil. Fear of a global energy supply disruption due to Russia’s invasion of Ukraine outweighs the demand concerns prompted by the impact of COVID-19 on China’s economy. The cost of a barrel of crude continues to hover around $100. With the oil price accounting for about 60% of pump prices, the national average for a gallon of regular is now $4.19, an increase of seven cents since Monday, April 25.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 1.6 million bbl to 230.8 million bbl last week. Gasoline demand decreased slightly from 8.87 million b/d to 8.74 million b/d. Although lower gas demand would typically push pump prices lower, the fluctuating oil price and tight gasoline supply have pushed pump prices higher. Pump prices will likely face upward pressure as oil prices remain above $100 per barrel.
Today’s national average for a gallon of gas is $4.19, which is a penny less than a month ago, but $1.29 more than a year ago.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 67 cents to settle at $104.69. Although prices declined on the day due to crude demand concerns as lockdowns continue in China, crude prices gained earlier in the week after EIA’s weekly report showed that total current supply level is approximately 16 percent lower than at the end of April 2021. Crude inventories rose by 700,000 bbl to 414.4 million bbl, but supply remains tight and the market remains highly volatile. For this week, crude prices will likely continue to increase, pushing pump prices higher. Additionally, the market will be watching this week’s OPEC+ meeting via videoconference on Thursday, May 5, which could see the cartel increase crude production to help meet global demand.