The United States surpassed Saudi Arabia and Russia to become the world’s biggest oil producer this year. According to a report from the Bank of America Corp., the U.S. is projected to remain the top producer of 2014 because domestic output is forecast to increase and production growth outside the U.S. has been lower than anticipated. “The shale boom in Texas and North Dakota continues to spur domestic production growth,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Not only does supply growth have a positive effect on the economy, but can help reduce the price at the pump. Increasing domestic production puts a cap on oil prices which keeps gas prices affordable.
The price for a barrel of oil slipped $1.68 last week, closing at $104.06 on the NYMEX on Friday. The national average price for a gallon of gasoline is 2 cents cheaper than last week. The average price is 3 cents cheaper in Tennessee compared to last week, which is $3.43 per gallon. The low price in Manchester is $3.27 per gallon and in Tullahoma the low price now stands at $3.25.
Gas Prices Falling
