Prices are also down significantly from last year, when the average gallon of gas in Tennessee was $2.60 per gallon. This week’s average started at about $2.35 per gallon. Tennessee also has the seventh-lowest average price in the nation.
Nationally, the average gallon of gas on Monday was $2.64, down seven cents from last week and 13 cents from July.
“On the week, nearly half of all states saw gas price averages decrease by at least a nickel,” AAA spokeswoman Jeanette Casselano said in a press release. “While gasoline demand increased week over week, it wasn’t enough to stay on pace with the huge jump in gasoline stocks. Therefore, pump prices continue to decline across the country.”
Crude oil prices increased by nearly $2 last week, settling at $54.50. Prices increased after reports that OPEC is considering additional crude production cuts. More details are expected at OPEC’s next meeting on Dec. 5 and 6 in Vienna.
Monday’s national average was $2.64, which is seven cents less expensive than last Monday, 13 cents less than a month ago and 21 cents cheaper than a year ago. Domestic gasoline stocks increased by a surprising 4.4 million barrels, according to the Energy Information Administration’s latest data, bringing the U.S. a stock level not seen since the end of March.
“The drops in gas prices could slow in the weeks ahead as some OPEC members talk about cutting oil production to stem the recent drop in oil prices. That possibility pushed oil back up $3 per barrel from the lows seen last week,” said Patrick DeHaan, head of petroleum analysis at GasBuddy.
"However, a production cut from oil producers may be more akin to putting lipstick on a pig, as oil markets have plenty of downside ahead as demand for fuels begins to move lower into the fall with summer driving season ending soon.
“The U.S. national average could fall an additional 35 cents per gallon by Thanksgiving even after this week's drop should the trade tensions and geopolitical risks remain the same."