Update on the current state of gas prices in Tennessee, the recent decline in prices, the regional variations, and the factors that may influence future price trends.
Gas Prices in Tennessee Decrease For 5 Cents
The Rogersville Review – Gas prices in Tennessee have been on a welcome decline for three consecutive weeks, currently averaging at $3.36 per gallon. This represents an eight-cent drop from a month ago, although it remains nine cents higher than a year ago. Despite recent spikes in crude oil prices, Megan Cooper, a spokesperson for AAA – The Auto Club Group, notes the continuing decrease in gas prices. However, she warns of potential future increases due to the historical link between crude oil prices and gasoline prices. Nevertheless, Tennessee enjoys having the third most affordable gas prices on average in the entire country.
About 26% of gas stations are offering below $3.25 per gallon gas prices in Tennessee, with the lowest 10% of pump prices at $3.12 for regular unleaded and the highest 10% at $3.73.
Nationally, the average price for a gallon of gas sits at $3.83, with a slight post-Labor Day weekend dip followed by a two-cent increase. The Energy Information Administration (EIA) reported a surge in gas demand from 9.07 to 9.32 million barrels per day (b/d) last week. Simultaneously, domestic gasoline stocks decreased from 217.4 to 214.7 million barrels. This combination of rising oil prices, higher gas demand, and tighter supply may contribute to higher pump prices in the coming weeks.
Implications For Gas Prices In Tennessee and Markets
Based on the article of Clarksville Online, the West Texas Intermediate (WTI) crude oil price increased by 85 cents to reach $87.54. This rise came after Saudi Arabia’s announcement of a voluntary 1 million barrels per day production cut through the end of the year. Should demand remain strong and supply remain tight, oil prices could continue to climb. The EIA also reported a significant drop in total domestic commercial crude inventories, decreasing from 422.9 to 416.6 million barrels.
Looking at regional gas prices in Tennessee, the most expensive metro markets include Jackson ($3.47 per gallon), Memphis ($3.44), and Nashville ($3.42). While the recent drop in gas prices is a relief, keeping an eye on potential future developments in the oil market is wise in these uncertain times.