AAA: TN gas prices fall 5 cents

Gas prices across the state reversed course last week and fell five cents, on average according to AAA. Its Tennessee gas price average now stands at $3.11 which is seven cents more expensive than one month ago and two cents more than one year ago.

The average price for a gallon of unleaded regular gasoline in Cocke County showed a slight decrease according to AAA, dropping from $3.11 per gallon last week to a current average of $3.09 per gallon.

“Despite expected upward pressure on gas prices, we actually saw our gas prices move less expensive over last week here in Tennessee,” said Megan Cooper, spokeswoman for AAA — The Auto Club Group. “If market conditions persist, it’s likely that we could see our gas prices hold steady again this week. As of today, Tennessee has the third least expensive state gas price average in the country.”

National gas prices

The national average for a gallon of gas rose two cents to $3.52 from last week. The slight nudge higher came despite Hurricane Beryl smacking into the coast of Texas, a record number of July 4 car travelers, and oil costs hovering above $80 per barrel.

According to new data from the Energy Information Administration (EIA), gas demand dipped from 9.42 million b/d to 9.39 last week. Meanwhile, total domestic gasoline stocks fell from 231.7 to 229.7 million barrels, while gasoline production increased last week, averaging 10.3 million barrels daily. Tepid gasoline demand and waffling oil costs may lead to some short-term stability in pump prices.

Today’s national average is $3.52, seven cents more than a month ago but four cents less a year ago.

National oil market dynamics

At the close of Wednesday’s formal trading session, WTI rose 69 cents to settle at $82.10 a barrel. The EIA reports that crude oil inventories decreased by 3.4 million barrels from the previous week. At 445.1 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.

Tennessee regional prices

Most expensive metro markets — Jackson ($3.17), Nashville ($3.14), Johnson City ($3.14)

Least expensive metro markets — Chattanooga ($3.04), Clarksville ($3.04), Knoxville ($3.05)