Tennessee gas prices, on average, are up two cents this week – breaking a four week streak of declines. The Tennessee Gas Price average is now $1.87 which is seven cents less than one month ago and 46 cents less than one year ago.
The average price in Coffee County matches the state average at $1.87. The national average is $2.12.
“Following a jump in demand, Tennessee broke its 29-day streak of declines and the state gas price average rose two cents,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “However, with many states seeing rising COVID-19 case numbers and a number of officials warning against holiday travel, demand is likely to see a dip in coming weeks.”
· 92% of Tennessee gas stations have prices below $2.00
· The lowest 10% of pump prices are $1.64 for regular unleaded
· The highest 10% of pump prices are $2.18 for regular unleaded
· Tennessee moved to the 8th least expensive market in the nation
National Gas Prices
With the majority of states seeing increases, the national gas price average pushed a penny more expensive. The overall weekly increases seen across the country are likely a reaction to the latest Energy Information Administration’s report showing increased demand (from 8.3 million b/d to 8.7 million b/d) while supply dwindled by 2.3 million bbl.
Despite the weekly increase, gas prices remain cheap both compared to last month (-5 cents) and last year (-48 cents).
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by 99 cents to settle at $40.13. Domestic crude prices decreased at the end of the day due to rising coronavirus infections worldwide, which could lead to a decrease in crude demand as countries and states implement new measures to reduce transmission of the virus. For this week, crude prices may continue to decline if demand concerns continue to worry the market.
Additionally, the Organization of the Petroleum Exporting Countries (OPEC) last week released its revised outlook for world oil demand through the end of the year, estimating demand will reduce by approximately 300,000 b/d to 96.3 million b/d. The revision raised market expectations that the cartel and its allies, including Russia, will either agree to continue or increase current supply cuts when they meet on November 30 and December 1. Currently, OPEC and its partners in the production reduction agreement have agreed to cut crude output by 7.7 million b/d through the end of 2020.