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Low demand continues to push down gas prices

Staff Report • Apr 14, 2020 at 5:00 PM

NASHVILLE — Gas prices are continuing to fall as demand hits lows not seen since the 1960s.

Tennessee’s average gas price is $1.63, which is 6 cents less than last week, 45 cents less than one month ago and 97 cents less than one year ago, AAA reported.

“We are seeing fast and furious gasoline demand destruction. The latest data reveals demand levels not seen since spring of 1968,” said Megan Cooper, AAA spokesperson, in a press release. “Every U.S. region is seeing builds in gasoline inventories and crude storage, which is just driving pump prices even cheaper.”

Quick facts

• 79% of Tennessee filling stations have sub-$1.75 gas prices.

• Tennessee gas prices have declined for 47 consecutive days for a total discount of nearly 61 cents per gallon.

• Two metro areas have average prices below $1.50: Cleveland ($1.47) and Memphis ($1.49).

Most expensive gas prices in the state

• Nashville ($1.81)

• Morristown ($1.70)

• Kingsport ($1.64)

Least expensive gas prices in the state

• Cleveland ($1.47)

• Memphis ($1.49)

• Chattanooga ($1.56)

Across the nation

The national gas price average has steadily declined for seven weeks, pushing the average cheaper by 61 cents to $1.86. That average is 6 cents less than last week, 44 cents cheaper than a month ago and nearly $1 less than a year ago, AAA reported.

Since late February, U.S. demand for gasoline has decreased 44% to 5 million barrels per day as gasoline inventories build across the country.

What about oil?

At the end of Thursday's formal trading session, West Texas Intermediate crude decreased by $2.33 to settle at $22.76 per barrel, AAA reported.

On Sunday, the Organization of the Petroleum Exporting Countries plus (OPEC+), led by Saudi Arabia, announced historic global crude productions cuts — nearly 10 million barrels per day in May and June.

“While the production cut is historic, it’s likely to not have an immediate impact on pump prices given the ongoing impact the COVID-19 pandemic continues to have on crude oil prices and gasoline demand,” Cooper said.

To view daily gas price averages, visit gasprices.aaa.com.

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