Volunteer state has third lowest gas prices in USA
Gas prices across the state are once again moving less expensive, falling five cents, on average, over last week. The Tennessee Gas Price average is now $2.72 which is seven cents less expensive than one month ago and 60 cents less than one year ago.
“Lower crude oil prices are continuing to impact the prices that we see at the pump,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “We’re still seeing concerns of a potential economic slowdown, which typically results in lower fuel demand. We’re also seeing oil prices drop in reaction to the expected increase in output from OPEC+, which would add more oil to the market. Barring any major shifts in the oil market, it looks like drivers are likely to see continued relief at the gas pump for now.”
National Gas Prices
The national average for a gallon of regular saw few changes over the past week, going up slightly to $3.16. Even though this is the time of year when we typically see seasonal increases and rising demand, the price of crude oil has been plunging. A couple of factors are at play: economic concerns and the decision by OPEC+ (the group of oil-producing countries) to increase output and add more oil to the market, despite tepid demand. The lower the price of oil, the less drivers pay at the pump. The national average is almost 50 cents less than it was this time last year.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell $2.21 to settle at $58.21 a barrel. The EIA reports that crude oil inventories decreased by 2.7 million barrels from the previous week. At 440.4 million barrels, U.S. crude oil inventories are about 6% below the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets – Johnson City ($2.79), Nashville ($2.77), Jackson ($2.76)
- Least expensive metro markets – Cleveland ($2.62), Clarksville ($2.63), Morristown ($2.64)
