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Gas prices hit four-year highs, AAA says

Staff Report • Jan 22, 2018 at 6:45 PM

NASHVILLE – Gas prices are having the most expensive start to the year since 2014.

So far this year, Tennessee gas prices have climbed an average of 9 cents, AAA reported. The state average rose 2 cents last week to $2.36, which is 14 cents more than a month ago and 25 cents more than this time last year.

“It has been anything but a normal January for prices at the pump,” said Mark Jenkins, AAA spokesman, in a press release. “Normally, demand slips and supplies build. However, this story so far this year has been a rally in oil prices.”

Oil production

The Energy Information Administration is forecasting a resurgence of U.S. oil production this year in response to the recent rise in oil prices, AAA reported.

The EIA predicts that crude oil production will average 10.3 million barrels per day in 2018, which would mark the highest annual average production rate in U.S. history.

Looking forward, the EIA expects domestic production will reach 10.8 million b/d in 2019 and surpass 11 million b/d in Nov. 2019. With those output numbers, the U.S. would surpass Saudi Arabia and Russia as the world’s top producer.

Most expensive gas prices in the state

• Jackson ($2.40)

• Nashville ($2.38)

• Kingsport-Bristol ($2.37)

Least expensive gas prices in the state

• Chattanooga ($2.28)

• Cleveland ($2.31)

• Clarksville-Hopkinsville ($2.31)

To view daily gas price averages, visit GasPrices.AAA.com.

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