Crude oil prices hit 4-year low amid OPEC disagreement and coronavirus concerns

09 March 2020

NASHVILLE, Tenn., (March 9, 2020) — The Tennessee gas price average has decreased by five cents this week amid concerns about the coronavirus and crude oil prices hitting a 4-year low.  The Tennessee Gas Price average  is now  $2.16 which is three cents less than one month ago and 13 cents less than one year ago. Tennessee is the 10th least expensive market in the nation.

“For the third week, U.S. gasoline stocks decreased while demand increased. Generally, growing demand amid declining stocks causes increases at the pump, but crude oil prices have dipped to four-year lows, signaling spring could be cheaper at the pump,” said Megan Cooper, spokesperson, AAA - The Auto Club Group.

National Gas Prices

The national gas price average is cheaper on the week (-5 cents), month (-5 cents) and year (-9 cents) – giving the vast majority of motorists savings at the pump. At $2.38, the national gas price average has not been this cheap since last February.

National Oil Market Dynamics

At the close of Friday’s formal trading session on the NYMEX, WTI decreased by $4.62 to settle at $41.28. Crude prices plunged at the end of last week after OPEC and other major crude producers, including Russia, failed to set a new production reduction agreement amid mounting global crude demand concerns caused by COVID-19. The rapid decline in crude prices has increased market concerns that an oil price war may breakout this week between major crude producers, contributing to further economic troubles worldwide as crude prices continue to drop dramatically. Moreover, the market continues to worry that the impact of COVID-19 will lead to a reduction in global economic growth and global travel, with crude demand expected to decrease. Until it appears that the international public health threat from the virus decreases, crude prices are likely to continue facing significant downward pressure.

 

Tennessee Regional Prices

  • Most expensive metro markets –  Memphis ($2.21), Jackson ($2.20), Morristown ($2.19)
  • Least expensive metro markets – Cleveland ($1.99), Chattanooga ($2.05), Clarksville ($2.08)

 

AAA GAS PRICE AVERAGES
(Price per gallon of regular unleaded gasoline)

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Monday

Sunday

Week Ago

Month Ago

One Year Ago

National

$2.381

$2.388

$2.435

$2.435

$2.471

Tennessee

$2.160

$2.168

$2.211

$2.194

$2.292

Click here to view current gasoline price averages

                                                           

Gas Price Survey Methodology

AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

 

About AAA - The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, banking, financial services, and travel offerings to over 13.5 million members across 13 U.S. states, the province of Quebec and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Carolina, North Dakota, Tennessee, Wisconsin, Puerto Rico, South Carolina and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.