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Gas prices expected to continue declining this week

Staff Report • Oct 30, 2018 at 9:30 AM

NASHVILLE — Prices at the pump dropped 5 cents last week, and more discounts are expected in the coming days.

The average price in Tennessee for a gallon of regular unleaded gasoline is $2.60, which is two cents less than last month and 35 cents more than a year ago, AAA reported.

Gas prices are being pushed lower due to seasonal demand, winter-blend fuel and falling crude prices. As motorists settle into the fall driving season, which will likely decrease demand for cheaper-to-produce winter-blend gasoline, AAA predicts pump prices will likely continue to decline into next week.

“Motorists are enjoying a discount at the pump,” said Stephanie Milani, Tennessee public affairs director for AAA. “Gas prices have been pushed lower by oil prices and gasoline supplies. Current market (fundamentals) show that drivers could see another 10-15 cent drop in the price of gas over the next few weeks.”

Local averages

• Kingsport-Bristol: $2.59

• Johnson City: $2.60

Most expensive gas prices in the state

• Nashville ($2.66)

• Jackson ($2.62)

• Morristown ($2.62)

Least expensive gas prices in the state

• Cleveland ($2.52)

• Chattanooga ($2.52)

• Knoxville ($2.57)

On the market

Crude oil prices have mostly fallen this week following the release of the Energy Information Administration’s weekly petroleum report, which showed crude inventories increased for the fifth consecutive week, AAA reported.

Domestic crude inventories gained 6.3 million barrels to total 422.8 million barrels, a level not seen since the beginning of the driving season in June, according to EIA’s latest data.

Continued growth in domestic crude barrels held in storage will likely cause prices to decline temporarily. However, with pending U.S.-imposed sanctions on Iran’s crude exports set to go into effect on Nov. 4, lower crude prices may be short-lived as global supply tightens amid robust global crude demand later this fall.

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

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