NASHVILLE — Gas prices across the state remained volatile last week, as pump prices rose another 9 cents, on average.
The state average is $2.98, which is 8 cents more expensive than one month ago and 2 cents less than one year ago, according to AAA.
"As expected, gas prices continued to fluctuate last week, giving way to incremental declines over the weekend," said Megan Cooper, spokeswoman for AAA - The Auto Club Group. "Barring any rebound in crude oil prices, we could see gas prices begin to slowly trend cheaper over this week, as refinery activity has ramped back up and global economic concerns are continuing to impact the market."
77% of Tennessee gas stations have prices below $3.
The lowest 10% of pump prices are $2.77 for regular unleaded.
The highest 10% of pump prices are $3.26 for regular unleaded.
Tennessee is the 10th least expensive market in the nation.
National gas prices
The recent surge in gas prices caused by frigid weather and robust holiday road travel may be ending. While the national average price rose daily starting on Christmas Eve, when it was $3.09, the steam may have run out as pump prices flattened and then fell by a penny over the weekend.
The national average for a gallon of gas rose 7 cents since last week to $3.28.
According to data from the Energy Information Administration, gas demand dropped from 9.33 million to 7.51 million barrels per day last week. Meanwhile, total domestic gasoline stocks fell by 300,000 barrels to 222.7 million barrels. Lower gasoline demand has contributed to limiting increases in pump prices.
The national average of $3.28 is 3 cents less than a month ago and 2 cents less than a year ago.
National oil market dynamics
At the close of Friday's formal trading session, WTI increased by 10 cents to settle at $73.77, AAA reported.
A lower dollar helped to push crude prices higher at the end of the week. However, crude prices declined earlier in the week amid ongoing global economic concerns due to rising COVID-19 cases, protests and cultural dissent in China. Crude prices could decline further this week if economic concerns persist.
Tennessee regional prices
Most expensive metro markets: Johnson City ($3.08), Morristown ($3.06), Kingsport ($3.02)
Least expensive metro markets: Clarksville ($2.88), Chattanooga ($2.91), Nashville ($2.97)