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Tennessee gas prices continue falling as oil prices rise

Staff Report • Dec 10, 2018 at 3:49 PM

NASHVILLE – Gas prices in Tennessee have been on the decline the last two months, and that trend could continue this week.

Sunday's state average of $2.17 per gallon is 7 cents less than last week, 34 cents less than last month and 9 cents less than this time last year, AAA reported. The state average has declined the last 59 days for a total discount of 52 cents.

“Gas prices in Tennessee could drop another 5-8 cents this week, but should level off soon,” said Mark Jenkins, AAA spokesman, in a press release. “Pump prices are close to catching up with the recent crude price plunge. However, oil prices are beginning to increase, after OPEC announced a production cut agreement on Friday. Regardless, drivers should continue to enjoy low gas prices through the end of the year, unless oil prices suddenly spike.”

Most expensive gas prices in the state

• Nashville ($2.28)

• Johnson City ($2.28)

• Clarksville-Hopkinsville ($2.22)

Least expensive gas prices in the state

• Cleveland ($2.01)

• Chattanooga ($2.01)

• Knoxville ($2.10)

National average

During the past month and a half, the national average has declined 1-2 cents a day, according to AAA. Over the weekend, the national average declined fractions of a penny.

Sunday's national average price of $2.42 per gallon is 5 cents less than a week ago, almost 30 cents less than last month and 4 cents less than this time last year. AAA reports the national average has declined 60 consecutive days for a total discount of 49 cents.

What about oil?

At the close of Friday’s formal trading session on the New York Mercantile Exchange (NYMEX), West Texas Intermediate crude increased $1.12 to settle at $52.61 per barrel, AAA reported. Oil prices rallied Friday after the Organization for Petroleum Exporting Countries (OPEC) announced that beginning in January 2019, the cartel — alongside non-OPEC members, including Russia — will reduce combined crude oil production by 1.2 million barrels per day.

The cut will be in place for six months and will use October 2018 as a baseline, a time when OPEC and Russia had less crude output than in November, according to AAA. With the announcement, crude prices will likely increase in 2019 ahead of the higher-demand driving season next summer.

Increased crude prices will likely lead to higher gas prices, AAA reported, given that approximately 50 percent of the cost motorists pay at the pump is based on the cost of crude used to make gasoline.

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

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