Nashville, TN (2020-04-13) The Tennessee gas price average continues to decline and has dropped six cents since this time last week. The Tennessee Gas Price average is now $1.63 which is 45 cents less than one month ago and 97 cents less than one year ago.
“We are seeing fast and furious gasoline demand destruction. The latest data reveals demand levels not seen since spring of 1968,” said Megan Cooper, spokesperson, AAA – The Auto Club Group. “Every U.S. region is seeing builds in gasoline inventories and crude storage, which is just driving pump prices even cheaper.”
- 79% of TN filling stations have sub-$1.75 gas prices
- TN gas prices have declined for 47 consecutive days for a total discount of nearly 61 cents per gallon
- Two metro areas have average prices below $1.50, Cleveland ($1.47) and Memphis ($1.49)
National Gas Prices & OPEC+ Production Cuts
The national gas price average has steadily declined for seven weeks, pushing the average cheaper by 61-cents to $1.86 today. During this time frame (since late February), U.S. demand for gasoline has decreased 44% to 5 million b/d as gasoline inventories build across the country.
On Sunday, the Organization of the Petroleum Exporting Countries plus (OPEC+), led by Saudi Arabia, announced historic global crude productions cuts – nearly 10 million b/d in May and June.
“While the production cut is historic, it’s likely to not have an immediate impact on pump prices given the ongoing impact the COVID-19 pandemic continues to have on crude oil prices and gasoline demand,” added Cooper.
At $1.86, today’s national average is 6-cents less than last week, 44-cents cheaper than a month ago and nearly $1 less than a year ago.
National Oil Market Dynamics
At the end of Thursday’s formal trading session, WTI decreased by $2.33 to settle at $22.76 per barrel. Crude prices were volatile last week, during the run-up to OPEC’s historic agreement with its allies, including Russia. The group met to discuss global crude productions cuts of up to 9.7 million b/d for May and June 2020. Under the new production reduction agreement, OPEC and its allies expect total global oil cuts to amount to more than 20 million b/d or 20 percent of global supply. Effective May 1, the production cuts are expected to ease in June, but some restrictions will remain in place through April 2022.
Crude prices will likely remain volatile this week, as the market assesses if the production cuts are sufficient to hold back growing global crude inventories as COVID-19 continues to push down demand.
Tennessee Regional Prices
- Most expensive metro markets – Nashville ($1.81), Morristown ($1.70), Kingsport ($1.64)
- Least expensive metro markets – Cleveland ($1.47), Memphis ($1.49), Chattanooga ($1.56)
About AAA – The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, banking, financial services, and travel offerings to over 13.5 million members across 13 U.S. states, the province of Quebec and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Carolina, North Dakota, Tennessee, Wisconsin, Puerto Rico, South Carolina and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 60 million members in the United States and Canada whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.