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Tennessee gas prices decline for 28th straight day

Staff Report • Jun 25, 2018 at 2:30 PM

NASHVILLE — Tennessee motorists have enjoyed falling gas prices for the last 28 consecutive days, but high oil prices may put an end to this downward trend.

The state average of $2.60 is 5 cents less than a week ago and 12 cents less than last month, AAA reported. However, Tennessee motorists are still paying nearly 60 cents more per gallon compared to last year.

Local averages

• Kingsport-Bristol: $2.58

• Johnson City: $2.59

Most expensive gas prices in the state

• Nashville ($2.66)

• Jackson ($2.65)

• Memphis ($2.63)

Least expensive gas prices in the state

• Cleveland ($2.49)

• Knoxville ($2.54)

• Chattanooga ($2.56)

What about oil?

Oil prices shot up $3 on Friday, which usually increases the cost of producing gasoline. The increase in crude came after OPEC and Russia announced an agreement to raise oil production, AAA reported.

While a production increase would normally put downward pressure on oil prices, it's still unclear exactly how much more oil will be reintroduced into the market and which countries it will come from.

The uncertainty is causing what's considered to be a short-term increase in oil prices. Ultimately, oil prices are forecast to decline after the details are hammered out.

On Friday, the price of oil settled at $68.58 per barrel, which is $3.50 more than the week before. Gasoline futures jumped 5 cents on the New York Mercantile Exchange (NYMEX), according to AAA.

“This news could bring some volatility back to the pumps this week,” said Mark Jenkins, AAA spokesman, in a press release. “Gas prices could rise a couple pennies or simply level out. Anything more than that would require crude to make additional gains this week.

“Regardless, it's encouraging that OPEC decided to raise production in hopes of avoiding a global supply deficit. That's good news for motorists, because this should eventually lead to lower prices at the pump.”

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

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