23
September
2019
|
17:00 PM
America/Chicago

AAA: National Gas Price Average Jumps By A Dime In One Week

Tennessee Gas Prices Increases 13 Cents In One Week

NASHVILLE, Tenn., (September 23, 2019) — Tennessee Gas Prices is $2.40 per gallon for regular unleaded, which is 13-cents more than last week's average, 9-cents more than a month ago and 18-cents less than one year ago. Today's national average is $2.67, which is a 11-cents more than last week, 7-cents more than a month ago and 18-cents cheaper than a year ago.

Last week was the first time since early June that the national gas price average jumped more than a nickel in under a few days. On the week, it's a dime more expensive at $2.66 with half of states seeing prices increase by 10 cents or more. However, even with the significant increase, the national average is still cheaper compared to last month (-6 cents) and last year (-19 cents).

Spurred by the Saudi Arabian oil facilities attacks the weekend prior, crude oil (West Texas Intermediate – WTI) increased as much as $10/bbl at its highest point early last week to nearly $64/bbl. Gasoline stations reacted just as swiftly as the market, raising local retail prices by as much as a quarter, which pushed the national average up six cents overnight last Tuesday. However, by the end of last week, crude was down to $58/bbl and gas prices started to stabilize as reports surfaced that Saudi facilities should be fully operational by end of September.

"At $2.66, the national average is a dime more expensive that last week. The good news is we are seeing downward movement with crude oil prices and stabilization at gas pumps, but Americans can expect some fluctuation through the end of the month," said Jeanette Casselano, AAA spokesperson. "Should Saudi's crude production be back to full capacity shortly, the price spikes are likely to be temporary."

In its latest report, the Energy Information Administration (EIA) measured U.S. demand at 8.9 million b/d, which is a substantial 900,000 b/d drop from the previous week and a low reading not seen since February. The decrease in demand amid the spike in crude oil prices could help to keep gas price fluctuations more moderate through the end of the month.

Crude Oil

At the close of Friday's formal trading session on the NYMEX, WTI decreased by four cents to settle at $58.09. Oil prices increased sharply last week, following news of attacks on two crude oil facilities in Saudi Arabia on September 14. On Monday, September 16, the first full day of trading after the attack, WTI crude oil prices experienced the largest single day price increase since August 21, 2008 and June 29, 2012, respectively, according to EIA.

On Tuesday, Saudi Aramco reported that it was producing 2 million b/d and that its entire output capacity will be fully restored by the end of September. Additionally, Saudi Aramco stated that crude oil exports to customers would continue by drawing on existing inventories and offering additional crude oil production from other fields. Tanker loading estimates from third-party data sources indicate that loadings at two Saudi Arabian export facilities were restored to the pre-attack levels – based on analysis by EIA. These efforts have helped crude prices to stabilize, and they are expected to continue stabilizing this week.

In related news last week, EIA reported that total domestic crude inventories increased by 1.1 million bbl last week. They currently sit at 417.1 million bbl, which is 23 million bbl higher than where they were last year at this time.


CURRENT AND PAST PRICE AVERAGES

Regular Unleaded Gasoline

Monday

Sunday

Week Ago

Month Ago

One Year Ago

2018 High

Record High

National

$2.667

$2.668

$2.564

$2.602

$2.850

$2.97 (5/26/2018)

$4.11 (7/17/2008)

Tennessee

$2.395

$2.398

$2.274

$2.308

$2.584

$2.73 (5/27/2018)

$4.12 (9/15/2008)

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.