Tennessee’s state average gas price is $2.27 per gallon for regular unleaded, which is a cent more than last week’s average, 8 cents more than a month ago and 32 cents more than one year ago.
Monday’s national gas price average was $2.56, which is the same price as last week, 7 cents less than a month ago, and 29 cents cheaper than a year ago.
“Americans can expect local pump prices to start to increase this week. The jump could end up being as much as a quarter per gallon throughout this month,” said Jeanette Casselano, AAA spokesperson. “Whether this is a short or long term trend will be determined by the price of crude oil prices and how quickly the facilities in Saudi Arabia can recover and get back online.”
At the close of Friday’s formal trading session on the NYMEX, WTI decreased by 24 cents to settle at $54.85, but on Monday, the price was up to $61/bbl. Overall, oil prices were mixed.
Early in the week, oil prices fell after reports emerged that the Trump Administration is considering relaxing sanctions on Iran, which would put more oil into an already oversupplied market; however, the losses were tempered by EIA’s weekly report showing that total domestic crude inventories fell by 6.9 million bbl last week. They now sit at 416.1 million bbl, which is nearly 20 million bbl higher than were they were at this same time last year.
For this week, crude prices will see increases due to increased tension in the Middle East, specifically stemming from the attacks in Saudi Arabia, and could be bolstered by increased optimism that China and the U.S., the world’s two largest crude consumers, may be nearing a resolution to the trade war.
Regular unleaded gas price averages in Tennessee were $2.27 on Monday, Sept. 16, $2.26 a week ago, $2.35 a month ago, and $2.59 a year ago.