Fla. (January 16, 2018) — Gas prices increased across most of the
country during the past week, yet states in the southeastern U.S. still
have some of the cheapest prices in the nation.
Tennessee gas prices increased 6 cents during the past week. The state
average of $2.34 is 10 cents more than a month ago, and 20 cents more
than this time last year.
The most expensive gas price averages in Tennessee are in Jackson
($2.37), Kingsport-Bristol ($2.36), and Johnson City ($2.36)
The least expensive gas price averages in Tennessee are in Chattanooga
($2.25), Clarksville-Hopkinsville ($2.29), and Cleveland ($2.30)
"Gas prices have yet to travel south for the winter, thanks in large
part to a strong oil market," said Mark Jenkins, spokesman, AAA - The
Auto Club Group. "The rising price of oil has increased the cost of
OIL PRICES REACH NEW HEIGHTS
The price of crude reached new multi-year highs last week. Factors like
lower levels of both domestic production and supply, cold weather in
North America, unrest in Iran, and strong economic growth helped spur
WTI closed at $64.30 per barrel on Friday - the highest daily settlement
since December 2014. This is the fourth consecutive week of gains,
amounting to a total increase of $7 since mid-December 2017.
The Energy Information Administration reported last week that domestic
crude oil production dropped by 290,000 b/d. The decline is the largest
U.S. production drop since the highly active hurricane season ended in
mid-October last year. Moreover, crude inventories around the country
dropped by 4.9 million barrels. The decline has given some market
observers encouragement that oil prices will continue to climb as
production slows and global supplies tighten.
Futures spot prices are above $63/b through July 2018. Although that
does not guarantee crude prices will be remain at that level through the
next seven months, this outlook could inspire explosive growth in the
U.S. shale industry, which could push crude prices lower as a result of
the increased global supply. In what could be a sign that this process
has begun, U.S. energy companies added 10 oil rigs this week, the
biggest increase since June, bringing the total rig count to 752, the
most since September.
EIA's Energy Price Outlook
U.S. regular gasoline retail prices averaged $2.42/gal in 2017 and are
forecast to average $2.57/gal in 2018 and $2.58/gal in 2019
U.S. crude oil (WTI) spot prices averaged $50.88/b in 2017 and are
forecast to average $56/b in 2018 and $57/b in 2019
U.S. crude oil production averaged an estimated 9.3 million barrels per
day (b/d) in 2017. U.S. crude oil production is forecast to average 10.3
million b/d in 2018, which would mark the highest annual average
production in U.S. history, surpassing the previous record of 9.6
million b/d set in 1970. EIA forecasts production to increase to an
average of 10.8 million b/d in 2019 and to surpass 11 million b/d in
Gas Price Tools for Reporters/Consumers
GasPrices.AAA.com - Daily national, state, and metro gas price averages.
AAA Mobile app - Free app that shows current prices at a gas station
Highs and Lows of 2017*
National: the highest average price for gasoline was $2.67 on September
8. The lowest was $2.23 on July 5.
Florida: the highest average price in was $2.73 on September 9. The
lowest was $2.13 on July 17.
Georgia: the highest average price was $2.76 on September 12. The lowest
was $2.08 on July 5.
Tennessee: the highest average price was $2.60 on September 10. The
lowest was $1.99 on July 5.