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Nashville, TN – The Tennessee gas price average continues to trend upward, climbing six cents over last week. The Tennessee Gas Price average is now $1.98 which is 12 cents more than one month ago and 34 cents less than one year ago.
“The recent gas price pump increases are a bit surprising given December demand numbers are the lowest posted for the month since 1999,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Rising crude oil prices and tightening supply are the main factors contributing to the uptick in pump prices.”
National Gas Prices
Pump prices across the country are getting more expensive as we head into the last weeks of the year. Since Monday, the national gas price average has jumped six cents to $2.22. While not the most expensive price we’ve seen this year, it is the highest national average since mid-September.
Two factors have contributed to driving up the price at the pump: rising crude oil prices and tightening supply. The domestic price of crude (WTI) has been steadily rising since November, with prices topping $49.00/bbl. Prices have not been this expensive since February, before stay-at-home guidance was introduced across the country. Prices began to rise last month alongside vaccination news and have only increased with it becoming available.
Last week, the Energy Information Administration (EIA) data shows United States. gasoline supply levels sit at 238.7 million bbls, which is 1.6 million bbls more than a year ago. While a healthy supply, the year-over-year surplus has been much greater through the last nine months.
This fact combined with low utilization rates, which are down 11%, indicates supply could tighten in weeks ahead especially with refinery consolidations in the northwest and maintenance in the upper Midwest.
However, demand still remains at an extremely low level. AAA believes this factor will impact gas prices, pushing them cheaper in January.
Today’s national average is 11 cents more expensive than last month, but 33 cents cheaper than last year.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by 74 cents to settle at $49.10. The price of domestic crude oil increased over $2.50 per barrel last week. Crude prices rose due to a weak dollar and increasing investment based on market optimism that coronavirus vaccines will help crude oil demand recover in 2021.
However, for this week, new demand concerns, as coronavirus infection rates continue to climb and travel restrictions increase, could push crude prices lower.
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.
TopicsAAA, Chattanooga TN, Crude Oil, EIA, Energy Information Administration, Gas Prices, Jackson TN, Kingsport TN, Megan Cooper, memphis tn, Nashville, Nashville TN, Oil Prices, Tennessee, Tennessee Gas Prices, The Auto Club Group, WTI
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