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Clarksville-Montgomery County has the Second Lowest Gas Prices in Tennessee
Nashville, TN – The Tennessee gas price average jumped eight cents this week – the largest weekly increase the state has seen so far in 2020.
The Tennessee Gas Price average is now $1.79 which is nearly 23 cents more than one month ago and nearly 64 cents less than one year ago.
“The beginning of June has not seen gas prices this low since 2004,” said Megan Cooper, spokesperson, AAA – The Auto Club Group.
“As crude oil prices trend higher and gasoline demand increases, Americans will see gas prices push more expensive, but this summer will be cheaper than last,” Cooper stated.
National Gas Prices
For 66 days, the national gas price average held below the $2.00/gallon mark, pushing as cheap as $1.76. In the past week, the average has inched up to $2.03. Despite the consistent increases at the pump, prices are still significantly cheaper year-over-year. In fact, during the first week of June the past five years, gas prices have typically averaged $2.81.
U.S. gasoline demand continues to show increasing strength. The Energy Information Administration’s (EIA) latest reading shows a 4% weekly increase at 7.5 million b/d. That is the highest demand level since states began issuing stay-at-home orders in mid-March.
National Oil Market Dynamics
At the end of Friday’s formal trading session, WTI increased by $2.14 to settle at $39.55 per barrel. At the end of last week, crude prices increased amid market optimism that the Organization of the Petroleum Exporting Countries (OPEC) and other major crude exporters, including Russia, would extend their 9.7 million b/d production reduction agreement for May and June 2020 into July.
Over the weekend, the cartel and its partners agreed to extend the deal for July, which is expected to reduce global crude supplies by nearly 10 percent while global crude oil demand remains low due to COVID-19 Coronavirus. Crude prices will likely increase this week in reaction to OPEC’s announcement.
Additionally, approximately one third of crude oil and natural gas production in the Gulf of Mexico has been halted, as Tropical Depression Cristobal makes landfall in Louisiana. The storm is expected to bring tropical-storm force winds and potential storm surge and flooding to the state’s coastal areas.
There is no estimate for when the facilities will resume operations. Facilities will likely be inspected after the storm has passed to determine if personnel can return safely. Any impact on domestic crude prices will depend on how long production remains shuttered and the extent of damage caused by the storm.
Tennessee Regional Prices
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
About AAA – The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America with more than 14 million members across 14 U.S. states, the province of Quebec and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety.
TopicsClarksville, Clarksville TN, Cleveland TN, Coronavirus, COVID-19, Crude Oil, EIA, Energy Information Administration, Gas Prices, Jackson TN, Johnson City TN, Kingsport TN, Megan Cooper, Nashville, Nashville TN, Oil Prices, OPEC, Organization of Petroleum Exporting Countries, Russia, Tennessee Gas Prices, The Auto Club Group, WTI
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