Tennessee’s state average gas price is $2.35 per gallon for regular unleaded, which is 7 cents less than a week ago, 20 cents less than one month ago and 19 cents less than one year ago, according to AAA.
The national average is $2.68, which is 6 cents cheaper than last week, 17 cents less than last month and 20 cents less than the same time last year.
“The national average dropped six cents last week, following a consistent downward trend since Memorial Day,” said Stephanie Milani, Tennessee public affairs director for AAA, in a press release. “The decline is unusual for this time of year.
“Typically, increased demand puts strain on supply and the imbalance pushes pump prices higher. This year, however, gasoline stocks have remained consistent thanks to strong domestic outputs and healthy imports, which help push pump prices lower.”
Most expensive gas prices in the state
• Jackson ($2.45)
• Nashville ($2.42)
• Memphis ($2.40)
Least expensive gas prices in the state
• Chattanooga ($2.20)
• Cleveland ($2.20)
• Clarksville-Hopkinsville and Kingsport-Bristol ($2.32)
What about oil?
At the close of Friday’s formal trading session on the New York Mercantile Exchange, West Texas Intermediate crude increased by 23 cents to settle at $52.51, AAA reported.
Crude prices increased late last week as a result of an attack on two tankers in the Gulf of Oman. This attack heightened market fears that rising tensions could continue in the Middle East and negatively impact crude oil availability.
Approximately 20% of global crude supplies flow through the waterway, according to AAA. The Trump administration attributed the attack to Iran; however, the country denies the accusation. If tensions between the U.S. and Iran escalate, the market will likely continue pushing global crude prices higher.
Before market fears increased, the price of crude hit its lowest point in six months last week. The drop in crude oil prices was supported by the Energy Information Administration revealing that total domestic crude inventories grew again by 2.2 million barrels and now sit at 485.5 million barrels.
The current level is 53 million barrels higher than last year’s level at this time, AAA reported. An oversupply of crude has increased concerns that the market has a glut of oil, even as U.S.-imposed sanctions on Iran and Venezuela have worked to reduce global supply.
To view daily gas price averages, visit www.GasPrices.AAA.com.