AAA: Tennessee gas prices rise nine cents

Gas prices across the state are continuing their upward trend for the third week, after rising a total of 9 cents, on average, over the course of last week. The Tennessee Gas Price average is now $3.30 which is 15 cents more expensive than one month ago but 59 cents less than one year ago.
“Last week’s expected jump at the pump came after OPEC’s announcement of oil production cuts starting next month that immediately caused oil prices to surge, “ said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “After initial gains early in the week, we did see the oil market plateau through the rest of last week, fortunately. It’s still likely that gas prices could fluctuate upwards in many parts of the state this week before fully adjusting to the moves in the futures market.”
Quick Facts
37% of Tennessee gas stations have prices below $3.25
The lowest 10% of pump prices are $3.05 for regular unleaded
The highest 10% of pump prices are $3.58 for regular unleaded
Tennessee remains the 11th least expensive market in the nation
National Gas Prices
OPEC’s announcement last weekend that it will cut production by over a million barrels per day starting in a month took the oil market by surprise. In response, crude immediately surged well above $80 a barrel, although it has since struggled to stay above that mark. Meanwhile, the national average for a gallon of regular gasoline rose ten cents since last week to hit $3.60.
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 9.15 to 9.3 million b/d last week. Meanwhile, total domestic gasoline stocks decreased substantially by 4.1 million bbl to 222.6 million bbl. Increased demand amid tighter supply has contributed to pushing pump prices higher. If demand continues to rise, pump prices will likely follow suit.
Today’s national average of $3.60 is 13 cents more than a month ago but 51 cents less than a year ago.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI decreased by 10 cents to settle at $80.61. Oil prices declined slightly last week due to market concerns that a recession could occur this year, which could push oil demand and prices down. Early in the week last week, crude prices spiked after the Organization of Petroleum Exporting Countries and its allies, including Russia, collectively known as OPEC+, announced it would cut production by 1.6 million bbl starting next month for the remainder of 2023. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 3.7 million bbl to 470 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner.
Tennessee Regional Prices
Most expensive metro markets – Nashville ($3.42), Clarksville ($3.40), Cleveland ($3.40)
Least expensive metro markets – Knoxville ($3.21), Morristown ($3.22), Memphis ($3.23)