(January 18, 2021 ) - The Tennessee gas price average has increased for two consecutive weeks, up five cents over last week. The Tennessee Gas Price average is now $2.19 which is 22 cents more than one month ago and nearly 15 cents less than one year ago.
“This week marks the second week of increases so far this year for Tennessee pump prices. Since January 1st, gas prices have increased a total of 15 cents,” said Megan Cooper, spokesperson, AAA - The Auto Club Group. “Market optimism surrounding the coronavirus vaccine, tightening supply and increasing crude oil prices are all factors helping to push gas prices higher.”
National Gas Prices
Since last week, the national average for a gallon of regular gasoline has increased by nearly seven cents to $2.39, which is nearly 18 cents more than a month ago, and nearly 17 cents less than a year ago. Pump prices have increased while gas demand remains low at 7.53 million b/d and total refinery utilization increased from 80.7 percent to 82 percent in the latest weekly report from the Energy Information Administration (EIA).
National Oil Market Dynamics
At the close of Thursday’s formal trading session, WTI increased by 66 cents to settle at $53.57. Crude prices continued to increase last week due to market optimism that coronavirus vaccines will help crude demand recover this year. Additionally, EIA’s new weekly report helped bolster prices, detailing that total domestic crude inventories declined by 3.2 million bbl to 482.2 million bbl last week.
If crude prices continue to sustain prices above $50 per barrel alongside higher refinery utilization rates and demand, drivers could see pump prices continue to climb through the week.
Tennessee Regional Prices