After four straight weeks of increases at the pump, gas prices across Tennessee appear to have stabilized. Gas prices, on average, remain the same this week as they did last week. The Tennessee Gas Price average remains $3.16 which is 26 cents more expensive than one month ago and $1.28 more than one year ago.
In Coffee County, average prices is at $3.13, which is 3 cents below the state average and 27 cents below the national average of $3.40.
“Thanks to a dip in domestic demand, Tennessee drivers are starting to see a little relief at the pump,” said Megan Cooper, spokeswoman, AAA – The Auto Club Group. “Although still elevated, crude oil prices seem to have leveled off, helping to minimize any additional spikes in pump prices in the short term.”
Quick Facts
- 10% of Tennessee gas stations have prices below $3.00
- The lowest 10% of pump prices are $2.97 for regular unleaded
- The highest 10% of pump prices are $3.39 for regular unleaded
- Tennessee moved to the 10th least expensive market in the nation
National Gas Prices
The national average price for a gallon of gas rose to $3.40, but the two-cent rise over last week is the smallest weekly increase in a month. News that Iranian oil, which has not been sold globally in large quantities since 2018, may return to the world market coupled with an OPEC+ meeting on November 4 via videoconference, is increasing market volatility, but slowing pump price increases, at least for now.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 2 million bbl to 215.7 million bbl last week. Gasoline demand also fell from 9.63 million b/d to 9.32 million b/d. The drop in demand has helped slow price increases, but elevated crude prices continue to put upward market pressure on pump prices, which will likely keep rising as long as oil prices are above $80 per barrel.
Today’s national average of $3.40 is 21 cents more than a month ago and $1.27 more than a year ago, and 79 cents more than in 2019.
National Oil Market Dynamics
At the close of Friday’s formal trading session, WTI increased by 76 cents to settle at $83.57. Crude prices gained on the day due to market expectations that the Organization of the Petroleum Exporting Countries, Russia and their allies, known as OPEC+, will maintain production cuts during their meeting this week. However, crude prices took a slight step back on the week after EIA reported that total domestic crude supply increased by 4.3 million bbl to 430.8 million bbl. If EIA’s next report shows another inventory increase, crude prices could decline this week.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
