Upward pressure on gas prices expected in short term

07 June 2021

AAA: TN Gas Prices Rise a Penny

Upward pressure on gas prices expected in short term

 

 

NASHVILLE, Tenn., (June 7, 2021) — Gas prices across Tennessee increased by a penny, on average, over last week. The Tennessee Gas Price average is now $2.88 which is 17 cents more than one month ago and nearly $1.10 more than one year ago. 

“We expect this week’s demand number to increase as it will reflect Memorial Day holiday weekend travel, but it’s not likely to lead to an increase in gas prices for the majority of motorists,” said Megan Cooper, spokeswoman, AAA - The Auto Club Group. “However, crude oil is on the rise and could prop up pump prices.”

 

Quick Facts

  • 92% of Tennessee gas stations have prices below $3.00
  • The lowest 10% of pump prices are $2.69 for regular unleaded
  • The highest 10% of pump prices are $3.12 for regular unleaded

National Gas Prices

After ten days of stability, the national gas price average increased a penny over the weekend to $3.05. On the week, the majority of states’ (26) gas price averages either increased by one cent or saw no movement. Only two states saw prices increase a nickel or more. Prices are poised to fluctuate in the coming week, especially in light of a recent drop in demand. The Energy Information Administration (EIA) reported demand decreased from 9.48 million b/d to 9.15 million b/d for the week ending May 28. During the same week, total gasoline stocks increased to nearly 234 million bbl as U.S. refinery utilization jumped to 88.7%—the highest rate since February 2020.

To help gauge pump price fluctuation later this summer, AAA is tracking two additional factors: crude oil prices and global supply. Last week, crude prices increased to their highest price point ($69/bbl) in 2.5 years. Since crude accounts for more than 50% of the price at the pump, when it goes up, so does the price motorists pay. What is promising is that crude may not sustain at this level. The Organization of the Petroleum Exporting Countries (OPEC), and its allies including Russia, announced last week they still plan to gradually increase crude production in July. If they do increase production, this could lead to a decrease in crude oil prices, which is good news for motorists.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by 81 cents to settle at $69.62. OPEC’s efforts to hold its production agreement in place bolstered prices last week. The move could help reduce pump prices later this summer, but the amount of the price reduction will depend on how well OPEC and its allies adhere to their agreement and if the additional production is not met with higher demand. OPEC and its allies will meet again on July 1 to review their production agreement.

Tennessee Regional Prices

  • Most expensive metro markets –  Johnson City ($2.94), Nashville ($2.91), Cleveland ($2.90)
  • Least expensive metro markets – Chattanooga ($2.80), Knoxville ($2.87), Kingsport ($2.88)

Tennessee Gas Price Averages

(Price per gallon of regular unleaded gasoline)

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Monday

Sunday

Week Ago

Month Ago

One Year Ago

Tennessee

$2.884

$2.884

$2.866

$2.713

$1.785

Chattanooga

$2.803

$2.814

$2.782

$2.642

$1.768

Knoxville

$2.874

$2.872

$2.876

$2.693

$1.737

Memphis

$2.891

$2.889

$2.889

$2.762

$1.778

Nashville

$2.913

$2.914

$2.873

$2.734

$1.857

Click here to view current gasoline price averages

 

 

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 62 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.