By Katie Northcott, News Director
According to the American Automobile Association, the average price of gas in Tennessee fell 15 cents over last week.
Find more details in the press release below:
Gas prices across the state continued their steady decline, falling 15 cents, on average. The Tennessee Gas Price average is now $3.60 which is 52 cents less expensive than one month ago but 92 cents more expensive than one year ago.
“Crude oil prices are falling after the announcement of an agreement between the United States and Iran to reopen the Strait of Hormuz,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Lower crude oil prices typically mean lower prices at the pump for drivers. If the Strait of Hormuz opens this week, it will still likely take time for market conditions to stabilize. Resuming traffic and restoring confidence among insurers and global markets could take weeks or longer.”
When the U.S.-Iran conflict began, oil traded near $67 per barrel. As tensions escalated, crude eventually climbed to a high of $112.95 in early April. During that time, Tennessee’s average price for gasoline rose from $2.57 per gallon to a high of $4.21 per gallon, increasing the cost of filling a 15-gallon tank by nearly $25.
National Gas Prices
The national average for a gallon of regular has been falling for three straight weeks, delivering some relief to drivers during the busy summer travel season. Since May 21, the national average has dropped from $4.56 to $4.06 thanks to crude oil prices remaining below $100 per barrel. Gas prices typically peak around this time of year, but uncertainty surrounding the Strait of Hormuz makes this year more unpredictable. Pump prices remain at four-year highs, but the national average is currently far from the record set on June 14, 2022, of $5.01 per gallon.
According to new data from the Energy Information Administration (EIA), gasoline demand increased last week from 8.59 million b/d to 8.73 million. Total domestic gasoline supply increased from 215 million barrels to 215.1 million. Gasoline production increased last week, averaging 9.7 million barrels per day.
National Oil Market Dynamics
At the close of Wednesday’s formal trading session, WTI rose $1.83 to settle at $90.03 a barrel. The EIA reports crude oil inventories decreased by 7.2 million barrels from the previous week. At 426.5 million barrels, U.S. crude oil inventories are about 5% below the five-year average for this time of year.
Tennessee Regional Prices
- Most expensive metro markets – Memphis ($3.74), Jackson ($3.63), Nashville ($3.62)
- Least expensive metro markets – Chattanooga ($3.33), Clarksville ($3.35), Cleveland ($3.42)
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