Star Staff Reports
NASHVILLE — Tennessee gas prices fell six cents, on average, over the week leading to Aug. 12.
All but four of Tennessee’s metro areas now have metro averages below $3/gallon. The Tennessee Gas Price average is now $3.01 which is 11 cents less expensive than one month ago and 42 cents less than one year ago.
“Tennessee drivers saw a slight break at the pump over last week, with several areas of the state seeing pump prices below $3/gallon,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “We’re still seeing some uncertainty in the market, so fluctuations in our local gas prices cannot be ruled out this week. However, if market conditions persist, we could see our state average drop below $3 per gallon this week.”
National Gas Prices
Falling by just three cents since last week, the national average for a gallon of gas hit $3.44, similar to the price in June.
According to new data from the Energy Information Administration (EIA), gas demand fell from 9.25 million b/d to 8.96 last week. Meanwhile, total domestic gasoline stocks rose from 223.8 to 225.1 million barrels.
Gasoline production increased last week, averaging 10.0 million barrels per day. Crude oil production hit an all-time high of 13.4 million barrels per day. Lower gasoline demand, rising supply, and stable oil costs may lead to sliding pump prices.
Mid-August national average for a gallon of gas was $3.44, nine cents less than a month ago and 40 cents less than a year ago.
National Oil Market Dynamics
At the close of August 14’s formal trading session, WTI rose by $2.03 to settle at $75.23 a barrel. The EIA reports that crude oil inventories decreased by 3.7 million barrels from the previous week.
At 429.3 million barrels, U.S. crude oil inventories are about 6% below the five-year average for this time of year.
Tennessee Regional Prices
Most expensive metro markets – Jackson ($3.09), Nashville ($3.04), Memphis ($3.04)
Least expensive metro markets – Clarksville ($2.89), Chattanooga ($2.90), Morristown ($2.97)
