Cheaper crude oil prices likely to help keep price fluctuation low this week
NASHVILLE, Tenn., (April 12, 2021) — For the second time this year, the Tennessee Gas Price average saw a week over week decrease - down a penny compared to last week. The Tennessee Gas Price average is now $2.68 which is 4 cents more than one month ago and $1.05 more than one year ago.
“After a wild March, Americans are seeing a little stability at the pump. On the week, 40 states’ averages either increased or decreased by only a penny,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “Cheaper crude oil prices will likely help to keep price fluctuation low this week.”
National Gas Prices
Refinery utilization is at its highest measurement this year: 84%. This strong utilization rate, as measured by the Energy Information Administration (EIA), helped contribute to the addition of 4 million bbl of gasoline, pushing overall supply levels to 234.5 million bbl for the week ending April 2. The refinery and production increases amid a small decrease in demand and cheaper crude oil prices resulted in the national gas price average decreasing by a penny to $2.86 on the week.
For the first time in nearly two months, crude oil prices last week held below $60/bbl for five straight days. The cheaper price is a positive indicator for more stability at the pump.
With a 1.25% decrease, demand dropped slightly to 8.7 million b/d. That measurement is well above the 5.5 million b/d recorded one year ago, but still significantly lower than the 9.8 million b/d seen in early April 2019. AAA expects April demand to remain below levels from 2019, but see healthy increases from a year ago, when many Americans were quarantining.
Today’s national average is $2.86, which is cheaper on the week (?1 cent), but more expensive on the month (+3 cents) and year (+$1.00).
National Oil Market Dynamics
At the close of last week’s formal trading session, WTI decreased nearly 30 cents to settle at $59.32. After hitting a 12-month high of $66/bbl last month, crude oil prices have been on the decline. While last Monday saw a low of $58.65, prices fluctuated minimally throughout the week, but never hit $60/bbl. A build in U.S. gasoline supply amid mixed feelings about ongoing COVID-19 concerns, despite vaccination optimism, contributed to the lower prices.
Tennessee Regional Prices
Tennessee Gas Price Averages
(Price per 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 with more than 14 million members across 14 U.S. states, the province of Quebec and two U.S. territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel offerings and more. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve traffic safety. For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn.