The Tennessee gas price average continues to decrease amid growing concerns about COVID-19 and has dropped 12 cents since this time last week. The Tennessee Gas Price average is now $2.04 which is nearly 17 cents less than one month ago and 31 cents less than one year ago.
"Motorists have been seeing significant decreases at the pump in a short amount of time, " said Megan Cooper, AAA spokesperson. "AAA expects Tennessee gas prices to continue trending cheaper, with the high likelihood of the state average hitting less than $2/gallon before the end of the week."
National Gas Prices
As crude oil prices trend close to $30/bbl, Americans are seeing pump prices plummet across the country. On the week, gas price averages in 35 states decreased by double-digits, pushing the national average to $2.25, the cheapest price point of the year.
At $2.25, the national gas price average is 13 cents cheaper on the week and nearly 20 cents less than the beginning of the month.
National Oil Market Dynamics
At the close of Friday's formal trading session on the NYMEX, WTI increased by 23 cents to settle at $31.73. Fears about COVID-19 and the crude price war between Russia and Saudi Arabia pushed crude prices lower last week. After President Trump announced that the U.S. Department of Energy would purchase oil to top off the Strategic Petroleum Reserve, crude prices rallied briefly. However, the announcement is unlikely to help increase crude prices further since the limited number of barrels the U.S. could purchase is small when compared to the dramatic reduction in global crude demand as a result of reduced economic activity due to COVID-19. Moving into this week, crude prices are likely to continue decreasing as the world grapples with how to contain the ongoing international public health crisis and associated economic challenges that could lead to a global recession. Until the price war ends and fears about COVID-19 subside, domestic crude prices are likely to remain low.