Rising crude oil prices likely to push pump prices higher again this week
For the second week in a row, the Tennessee gas price average saw a double-digit increase week-over-week. Since last Monday, gas prices across Tennessee have risen 10 cents, on average. The Tennessee Gas Price average is now $3.12 which is 22 cents more expensive than one month ago and $1.18 more than one year ago.
“Compared to the price of gas a year ago, it now costs consumers about $17 more to fill up their vehicles,” said Megan Cooper, AAA – The Auto Club Group. “Unfortunately, it doesn’t look like drivers will be finding relief at the pump any time soon. Global supply concerns continue to keep upward pressure on the price of crude oil, which is now closing daily above $80 per barrel.”
24% of Tennessee gas stations have prices below $3.00
The lowest 10% of pump prices are $2.93 for regular unleaded
The highest 10% of pump prices are $3.35 for regular unleaded
4 metro areas saw double-digit increases in their metro averages over last week: Cleveland (+ 17 cents), Nashville (+15 cents), Chattanooga (+ 14 cents), Clarksville (+ 12 cents)
National Gas Prices
The national average for a gallon of gasoline rose a nickel over the past week to hit $3.32. The primary driver of this surge remains the cost of crude oil, which is now closing daily above $80 a barrel. In August, the price of crude was in the low $60s per barrel.
According to new data from the Energy Information Administration (EIA), last week’s total domestic gasoline supply fell by 2 million bbl to 223.1 million bbl. Gasoline demand also fell from 9.43 million b/d to 9.19 million b/d, but the agency calculates it is still some 610,000 b/d above last year. Typically, softening demand should result in some easing of pump prices, but the higher cost for crude is blocking this. With oil prices remaining elevated, pump prices will follow suit because the cost of crude oil accounts for more than half of the price of each gallon of gas.
Forecasts from the International Energy Agency for more robust oil demand, especially heating oil this winter, are also keeping crude oil prices elevated.
Today’s national average of $3.32 is 13 cents more than a month ago, $1.16 more than a year ago, and 67 cents more than in 2019.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by 97 cents to settle at $82.28. Crude prices increased last week despite the EIA reporting that total domestic crude inventories increased by 6.1 million bbl to 427 million bbl last week. The current storage level is nearly 13 percent lower than the level at this same time last year. Given supply concerns, the market continues to bolster prices higher because of tight supply. Prices could climb further this week if EIA’s next report shows a decline in stocks.
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 – Nashville ($3.17), Cleveland ($3.16), Johnson City ($3.12)
Least expensive metro markets – Jackson ($3.09), Morristown ($3.10), Clarksville ($3.10)
Ways to Save on Gasoline
Combine errands to limit driving time.
Shop around for the best gas prices in your community.
Consider paying cash. Some retailers charge extra per gallon for customers who pay with a credit card.
Remove excess weight in your vehicle.
Drive conservatively. Aggressive acceleration and speeding reduces fuel economy.
Enroll in savings programs. AAA Members who enroll in Shell’s Fuel Rewards program can save 5 cents per gallon when they fill up at Shell. Click here for more information.
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.