Gas Prices weaken as Crude Prices Fall
Nashville, TN – Tennessee motorists saw a little relief at the pump over last week as gas prices fell three cents, on average, across the state. The Tennessee Gas Price average is now $3.06 which is nine cents cheaper than one month ago and $1.16 more than one year ago.
“Consumers may be catching a break at the pump right now, but it’s not for a very good reason,” said Stephanie Milani, Tennessee Public Affairs Director, AAA – The Auto Club Group. “A potential COVID-19 induced economic slowdown hurts everyone and could prompt OPEC to slash production if oil prices drop too low.”
- 45% of Tennessee gas stations have prices below $3.00
- The lowest 10% of pump prices are $2.82 for regular unleaded
- The highest 10% of pump prices are $3.36 for regular unleaded
National Gas Prices
Pump prices continue to tumble as fears of a possible COVID-19 Coronavirus global economic slowdown pushed oil prices into the mid $60.00s per barrel—a price not seen since August.
Also helping to ease upward pricing pressure was the decision by OPEC and its oil-producing allies not to cut production. The national average for a gallon of gas dipped 4 cents on the week to $3.35. For consumers, gasoline prices were last this low on October 20th.
On December 2nd, OPEC and its allies, a group referred to as OPEC+, announced it would stick to its plan, for now, to raise production by 400,000 b/d in January. The move was likely in response to the Joe Biden Administration’s call to increase supply to tame high fuel prices.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks increased by more than 4 million bbl to 215,422 million bbl last week. Meanwhile, gasoline demand dipped from 9.3 million b/d to 8.8 million b/d. The slight decrease in demand contributed to falling prices, while lower crude prices also put downward market pressure on pump prices.
Today’s national average of $3.35 is seven cents less than a month ago and $1.19 more than a year ago.
National Oil Market Dynamics
At the close of last week’s formal trading session, WTI decreased 24 cents to settle at $66.26. Crude oil prices decreased last week due to uncertainty of the COVID-19 omicron variant’s impact on demand and the announcement that OPEC+ will ramp up production by 400,000 b/d in January.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
Tennessee Regional Prices
- Most expensive metro markets – Memphis ($3.12), Morristown ($3.12), Jackson ($3.12)
- Least expensive metro markets – Clarksville ($2.97), Cleveland ($2.99), Chattanooga ($3.04)
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
 |
Monday |
Sunday |
Week Ago |
Month Ago |
One Year Ago |
|
Tennessee |
$3.061 |
$3.066 |
$3.097 |
$3.154 |
$1.902 |
|
Chattanooga |
$3.023 |
$3.035 |
$3.066 |
$3.147 |
$1.865 |
|
Knoxville |
$3.073 |
$3.079 |
$3.110 |
$3.167 |
$1.871 |
|
Memphis |
$3.115 |
$3.116 |
$3.143 |
$3.172 |
$1.966 |
|
Nashville |
$3.075 |
$3.077 |
$3.104 |
$3.065 |
$1.893 |
|
Click here to view current gasoline price averages |
|||||
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 62 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety.
For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn.
