Last week, the average price of gas in Tennessee dropped by seven cents to $2.71 a gallon, continuing the downward trend. According to AAA, The Auto Club Group, this price is 32 cents less than it was this time last year and one penny less than it was a month ago.
“Right now, we are experiencing the gradual seasonal decline at the pump that we would typically expect to see this time of year,” Megan Cooper, spokeswoman for AAA stated. “Tennesseans are paying 32 cents less at the gas pump than they were a year ago. A seasonal decline in gasoline demand, alongside recent dips in crude oil prices, will likely help keep prices at the pump low in the short term.”
Prices of Gas Nationwide
Due to low oil prices and weak domestic gasoline demand, the national average price of a gallon of gas dropped three cents to $3.10 over the previous week.
The Energy Information Administration (EIA) reports that while total domestic gasoline stockpiles decreased from 213.6 million barrels per day (b/d) to 210.9 million, gas consumption climbed marginally from 8.83 million barrels per day (b/d) to 9.15 million.
The national average is $3.10 per gallon as of Monday, which is 32 cents less than it was a year ago and eight cents less than it was a month ago.
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Dynamics of the National Oil Market
The price of West Texas Intermediate (WTI) crude oil increased by $1.40 on Wednesday, ending the day at $68.61 a barrel. With total stocks at 425.5 million barrels, U.S. crude oil inventories dropped by 0.5 million barrels last week, falling about 4% short of the five-year average for this season.
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Regional Prices for Tennessee
Memphis ($2.76), Jackson ($2.78), and Johnson City ($2.82) are Tennessee’s most costly metro areas. Cleveland ($2.67), Clarksville ($2.65), and Chattanooga ($2.62) are the least expensive.
