The Tennessee Gas Price average is now $1.91 - a penny increase over last week. Today's state average is down one penny from last month and nearly 39 cents cheaper than this time last year.
“Gasoline stocks hit their lowest level since the pandemic began and demand dipped on the week, down to 8.6 million b/d,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “These decreases typically lead to cheaper pump prices, but this summer we’ve seen atypical gas price trends.”
• 91% of Tennessee gas stations have prices below $2.00
• The lowest 10% of pump prices are $1.73 for regular unleaded
• The highest 10% of pump prices are $2.22 for regular unleaded
• Tennessee remains the 8th least expensive market in the nation
National Gas Prices
At $2.18, the national gas price average increased by one cent on the week. That is the same price as a month ago and 41 cents cheaper than a year ago.
The Energy Information Administration recorded gasoline stocks at their largest one-week draw since May. Total stocks fell by 4 million bbl down to 243.7 million bbl. Year-over-year, stocks are at a 10 million surplus while demand sits 1.3 million b/d less. U.S refinery utilization rates continue to hover at 80%.
As of Tuesday, it appears as if the Gulf Coast was not as seriously impacted by Hurricane Marco as originally feared. However, Hurricane Laura could become a Category 3 hurricane and make landfall by late Wednesday night or early Thursday morning.
According to the U.S. Department of Interior's Bureau of Safety and Environmental Enforcement, approximately 58 percent, or 1.065 million b/d, of crude production in the Gulf of Mexico has been shuttered ahead of the storms and 114 (18%) platforms evacuated.
While gasoline stocks remain at a healthy level, if platforms and rigs are offline for an extended amount of time, supply could tighten and gas prices could be impacted. AAA will continue to monitor activity and provide related gas price updates.
National Oil Market Dynamics
At the end of Friday’s formal trading session, WTI decreased by 48 cents to settle at $42.34 per barrel. Crude prices were supported by growth in the strength of the U.S. dollar. Additionally, domestic crude prices decreased despite EIA’s weekly report revealing that total domestic inventories decreased by 1.6 million bbl last week, lowering total stocks to 512.5 million bbl. For this week, crude prices could increase, depending on the impact of Tropical Storms Laura and Marcos. If crude production continues to decrease and stays offline for an extended period, crude prices could increase as supply tightens.
Tennessee Regional Prices
• Most expensive metro markets – Memphis ($1.96), Jackson ($1.96), Nashville ($1.94)
• Least expensive metro markets – Chattanooga ($1.84), Cleveland ($1.85), Kingsport ($1.88)