Gas prices across the state held steady for the second week in a row. The Tennessee Gas Price average remains $2.72 which is three cents more expensive than one month ago but 44 cents less than one year ago.
“As we head into the holiday weekend, there’s the chance that gas prices may begin to fluctuate due to the expected increase in gasoline demand,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “However, even if prices do fluctuate higher, drivers should still spend significantly less at the pump for their holiday road trips this year compared to last.”
National Gas Prices
Gas prices are slowly creeping back up just in time for the busy summer driving season. The national average for a gallon of regular is up 4 cents from last week, as the price of crude oil rises and demand goes up. Typically, the seasonal increase in gas prices starts earlier in the spring, but lower crude oil prices so far this year have kept that from happening. Now, we’re starting to settle in a more typical pattern. Despite the upward trend, drivers are paying about 40 cents less compared to last year, which is good news for the record 39.4 million Americans expected to take road trips over Memorial Day weekend.
According to new data from the Energy Information Administration (EIA), gasoline demand increased from 8.71 million b/d last week to 8.79. Total domestic gasoline supply decreased from 225.7 million barrels to 224.7. Gasoline production decreased last week, averaging 9.4 million barrels per day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI fell 52 cents to settle at $63.15 a barrel. The EIA reports that crude oil inventories increased by 4 million barrels from the previous week. At 441.8 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 – Jackson ($2.78), Nashville ($2.77), Johnson City ($2.75)
- Least expensive metro markets – Cleveland ($2.59), Chattanooga ($2.64), Clarksville ($2.65)
