AAA expects gas prices to decline this week after slipping 1 cent over the weekend. This decline, caused by falling fuel prices on the stock market, could continue throughout the month.
“Fuel prices plunged on the stock market last week, which should clear the way for a significant discount at the pump,” said Mark Jenkins, AAA spokesman, in a press release. “Motorists should see a 5-10 cent drop or more in the next 10 days.
“This is the type of downward movement we normally see at the pump during the fall,” Jenkins continued. “However, upward pressure could easily return later this month, as the market braces for U.S. sanctions against Iranian crude, and what that might mean for global supply and demand."
Due to a slight increase last week, the state average of $2.68 per gallon is only a half-cent less than a week ago. Even so, Tennessee motorists are still paying 9 cents per gallon more than last month and 36 cents more than this time last year, according to AAA.
Most expensive gas prices in the state
• Nashville ($2.72)
• Jackson ($2.71)
• Kingsport-Bristol ($2.69)
Least expensive gas prices in the state
• Chattanooga ($2.61)
• Clarksville ($2.64)
• Cleveland ($2.64)
A look at fuel
Last week on the New York Mercantile Exchange U.S. crude oil prices dropped $3 per barrel, and U.S. gasoline prices declined 14 cents, AAA reported.
U.S. crude oil production has reached a new high, and supply levels increased for the third consecutive week, registering nearly 1.5 percent higher than the week before.
When it comes to gasoline, AAA reports that supplies are rising, while production rates are falling. Gasoline demand, according to measurements from the Energy Information Administration, is 2.7 percent stronger than this time last year.
To view daily gas price averages, visit GasPrices.AAA.com.