Tennessee’s state average gas price is $2.38 per gallon for regular unleaded, placing it as the 7th lowest average in the nation. The average is 6 cents below last week’s average, 12 cents less than a month ago, and 25 cents less than one year ago.
Domestic gasoline stocks built by a surprising 4.4 million barrels, according to Energy Information Administration’s (EIA) latest data, bringing a U.S. stock level not seen since the end of March.
“On the week, nearly half of all states saw gas price averages decrease by at least a nickel,” said Jeanette Casselano, AAA spokesperson. “While gasoline demand increased week-over-week, it wasn’t enough to stay on pace with the huge jump in gasoline stocks. Therefore, pump prices continue to decline across the country.”
At the close of Friday’s formal trading session on the NYMEX, WTI increased by a $1.96 to settle at $54.50. Crude prices increased last week after reports emerged that OPEC is considering additional crude production cuts.
In July, the cartel announced that it and its partners would extend the 1.2 million b/d crude production reduction agreement for an additional nine months. More details about the potential production cuts will likely be discussed at OPEC’s next meeting on December 5-6 in Vienna. Crude prices could increase this week amid further indications that global crude supply will tighten this fall.
Regular unleaded gas price averages in Tennessee were $2.38 on Monday, Aug. 12, $2.44 a week ago, $2.50 a month ago, and $2.63 a year ago.