Global Supply Concerns Carry Oil Prices Above $90 a Barrel

07 February 2022

NASHVILLE, Tenn., (February 7, 2022) —The trend of higher gas prices continues as we begin the second week of February. Since last Monday, gas prices across Tennessee rose a nickel, on average. The Tennessee Gas Price average is now $3.15 which is 13 cents more expensive than one month ago and 91 cents more than one year ago.  

"Oil prices saw another strong round of gains last week, so, unfortunately, it looks like the pain at the pump may continue,” said Stephanie Milani, Tennessee Public Affairs Director, AAA - The Auto Club Group. "The upward momentum in crude prices has been driven by geopolitical concerns related to Russia, cold weather and constricted global crude output. The price of crude rose $6 last week, which if sustained, could trigger another 10-15 cent hike at the pump in the coming weeks."

Quick Facts

  • 14% 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 $3.48 for regular unleaded

National Gas Prices

Blustery winter weather and geopolitical tensions are helping to drive the price of oil higher, which is in the low-$90s per barrel, nearly $30 more than in August. The recent cold weather in the U.S increased the demand for heating oil. Meanwhile, the concern that Russia will react to potential western sanctions by withholding crude oil from the already tight global market puts heavy upward pressure on prices. The national average for a gallon of gas has surged to $3.44, eight cents more than a week ago. Gas was last this expensive in 2014.

According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks grew by 2.1 million bbl to 250 million bbl last week. However, gasoline demand dropped from 8.51 million b/d to 8.23 million b/d. Usually, an increase in total stocks and a decrease in demand puts downward pressure on pump prices, but the rising cost of oil continues to push prices higher instead. If crude prices continue to climb, pump prices will likely follow suit.

Today’s national average for a gallon of gas is $3.44, which is 14 cents more than a month ago and 98 cents more than a year ago.

National Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by $2.04 to settle at $92.31. The tension between Russia and Ukraine continues to contribute to rising oil prices. Russia is a member of OPEC+, and any sanctions based on their actions toward Ukraine may cause it to withhold crude oil from the global market. Additionally, EIA reported that total domestic crude stocks decreased by 1.1 million bbl to 415.1 million bbl. The current stock level is approximately 13 percent lower than at the end of January 2021, contributing to pressure on domestic crude prices. If EIA’s next report shows another inventory decline, crude prices could continue to rise.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also map a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.

Tennessee Regional Prices 

  • Most expensive metro markets - Memphis ($3.25), Nashville ($3.18), Jackson ($3.17)
  • Least expensive metro markets - Cleveland ($3.09), Chattanooga ($3.09), Knoxville ($3.10)


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

$3.147

$3.139

$3.101

$3.021

$2.235

Chattanooga

$3.091

$3.099

$3.070

$3.005

$2.126

Knoxville

$3.100

$3.089

$3.051

$3.023

$2.241

Memphis

$3.249

$3.235

$3.180

$3.087

$2.257

Nashville

$3.176

$3.175

$3.149

$3.057

$2.254

Click here to view current gasoline price averages