Tennessee gas prices broke a four-week decline trend last week. At the beginning of the week, gas prices jumped five cents to $2.79, and then dropped back down to $2.76 by the end of the weekend. The Tennessee Gas Price average is now $2.76 which is 20 cents less expensive than one month ago and 62 cents less than one year ago.
"Crude oil and gasoline futures rose last week, likely due to optimism that the Federal Reserve's interest rate cut could boost the global economy and energy demand," said Megan Cooper, spokeswoman, AAA - The Auto Club Group. "Despite the fluctuation in our pump prices over last week, we are still over 60 cents cheaper than last year, and Tennessee has the third least expensive state gas price average in the country."
National Gas Prices - The national average for a gallon of gas has held steady since last week at $3.20. Gas prices had been falling by more than twice as much recently, but the arrival of Hurricane Francine to the Gulf Coast created some temporary issues for nearby oil production and refining.
According to new data from the Energy Information Administration (EIA), gas demand increased slightly last week from 8.47 million b/d to 8.77. Meanwhile, total domestic gasoline stocks remained flat at 221.6 million barrels, while gasoline production increased last week, averaging 9.7 million barrels per day. Lackluster gasoline demand and low oil costs will likely keep pump prices sliding.
Today’s national average for a gallon of gas is $3.20, 17 cents less than a month ago and 65 cents less than a year ago.
National Oil Market Dynamics - At the close of Wednesday’s formal trading session, WTI fell by 28 cents to settle at $70.91 a barrel. The EIA reports that crude oil inventories decreased by 1.6 million barrels from the previous week. At 417.5 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets - Jackson ($2.81), Nashville ($2.79), Memphis ($2.79)
- Least expensive metro markets - Chattanooga ($2.70), Cleveland ($2.71), Clarksville ($2.71)
