Sunday's state average of $2.65 is 3 cents less than a week ago, AAA reported. Still, Tennessee gas prices remain 7 cents more than a month ago and 37 cents more than this time last year.
“Motorists are getting a welcome reprieve from high prices at the pump,” said Mark Jenkins, AAA spokesman, in a press release. “Gas prices have been pushed lower by oil prices, which significantly declined during the past two weeks. The market is responding to strong gains in domestic oil supplies, easing global supply concerns. Motorists can expect additional declines at the pump if oil prices drop again this week.”
Most expensive gas prices in the state
• Nashville ($2.69)
• Jackson ($2.68)
• Kingsport-Bristol ($2.66)
Least expensive gas prices in the state
• Chattanooga ($2.57)
• Cleveland ($2.57)
• Knoxville ($2.62)
On the market
The crude market saw mostly losses last week following the Energy Information Administration’s weekly petroleum report, which stated that domestic crude inventories grew by 6.5 million barrels. Total crude inventories now sit at 416.4 million barrels, marking the fourth week of consecutive growth and highest level since late June, AAA reported.
The larger-than-expected growth in crude levels jolted the market, which had seen prices steadily rising due to concerns about U.S.-Saudi Arabia relations and upcoming U.S.-imposed sanctions on Iran’s crude exports, according to AAA.
Other highlights from AAA:
• U.S. crude prices dropped $5 over the last two weeks, a decline that usually triggers a 12.5-cent decline at the pump.
• West Texas Intermediate (WTI) crude settled at $69.12 per barrel Friday on the New York Mercantile Exchange (NYMEX).
• Gasoline futures prices dropped 17 cents over the last two weeks on the NYMEX.
• Wholesale gasoline declined nearly 20 cents over the last two weeks.
To view daily gas price averages, visit GasPrices.AAA.com.