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Gas prices to continue falling through Thanksgiving

Staff Report • Nov 19, 2018 at 6:00 PM

NASHVILLE — Oil prices hit a new low last week, further fueling the plunge at the gas pump.

Gas prices in Tennessee dropped another 8 cents last week, AAA reported. At $2.42 per gallon, the state average is the lowest since March and is only 16 cents higher than this year's lowest daily average price of $2.26.

Thanksgiving gas prices in Tennessee will be slightly higher than last year. By Thanksgiving Day, AAA predicts the state average will drop to $2.38, which is only 8 cents more than last year's holiday ($2.30).

“Tennesseans can be thankful for strong oil production and supplies, which have set the table for some of the lowest gas prices of the year,” said Mark Jenkins, AAA spokesman, in a press release. “The state average should carve off another 5 cents before Thanksgiving and eventually drop below $2.20/g before fully adjusting to recent oil and wholesale gas price declines.

“However, there is potential for oil prices to rise in December, depending on how markets respond to possible OPEC oil production cuts and sanctions against Iranian oil exports.”

Most expensive gas prices in the state

• Nashville ($2.50)

• Johnson City ($2.47)

• Jackson ($2.44)

Least expensive gas prices in the state

• Cleveland ($2.29)

• Chattanooga ($2.32)

• Knoxville ($2.36)

Oil, gas production remain strong

Crude oil supplies increased 2.4 percent in their eighth consecutive weekly gain, according to data from the Energy Information Administration. Crude production reached a historic 11.7 million barrels per day, an increase of 100,000 barrels per day from the week before.

Gasoline demand increased 1 percent, while gasoline supplies dipped by a little more than a half-percent, EIA reported. Gasoline production remains strong for this time of year.

Sub-$2 gasoline?

Motorists are beginning to find gasoline below $2 at various filling stations in states with low gas taxes like Tennessee, Alabama and Louisiana, AAA reported. Even so, there are currently no states where average price is anywhere near $1.99 per gallon.

Oil prices would have to drop another $10-15 per barrel for sub-$2 gasoline to be prevalent, according to AAA. Tennessee's average price for gasoline was last below $2 per gallon in July 2017, at which time oil prices were in the mid $40s.

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

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