The Tennessee gas price average remains unchanged since last week. The Tennessee Gas Price average is $1.94 which is exactly where prices were one month ago and nearly 41 cents less than one year ago.
The average price in Coffee County is on par with the state average at $1.94, which is up about two cents from the prior week.
“In a typical year, a hurricane season like we’ve experienced this year would have caused gas prices to spike, but 2020 is not a typical year,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Low U.S. gasoline demand has helped contain any impact to gas prices locally and regionally throughout this hurricane season.”
· 89% of Tennessee gas stations have prices below $2.00
· The lowest 10% of pump prices are $1.75 for regular unleaded
· The highest 10% of pump prices are $2.23 for regular unleaded
· Tennessee remains the 9th least expensive market in the nation
National Gas Prices
Over the weekend Hurricane Delta made landfall in southwestern Louisiana as a category 2 hurricane. While the storm caused some disruptions, refineries are reporting operations have resumed. The Colonial Pipeline Line 1, the main gas line, was down temporarily over the weekend due to loss of power, which has since been restored as well as service. Line 2, the distillates line, is currently shutdown without power. While the Bureau of Safety and Environmental Enforcement reports that approximately 91% of oil production in the Gulf of Mexico is currently shut-in, as of this morning, inspections are underway and production is expected to resume this week.
On the week, the national gas price average held steady at $2.18 despite a slight jump in demand. At 8.8 million b/d, gasoline demand is just 6% below levels last year at this time. However, the increase isn’t substantial enough to impact supply levels or pump prices. The Energy Information Administration’s (EIA) weekly report measures gasoline supply at 226.7 million bbl. That is a decrease of 1.7 million bbl from the week prior, though the drop is likely attributed to high export numbers.
Today, motorists can find gas for $2.25 or cheaper at 72% of gas stations, compared to 12% last October. The national average is a penny less than last month and 45 cents cheaper than last year.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 59 cents to settle at $40.60. Crude prices dropped due to market concern about increasing coronavirus infections worldwide, which could lower crude demand. The drop in prices occurred alongside the EIA weekly report revealing that total domestic crude inventories increased by 500,000 bbl to 492.9 million bbl. For this week, crude prices could decline further if demand concerns continue to worry the market.