Smoky Mountain Journal -AAA: 2017 GAS PRICES WERE HIGHEST IN 3 YEARS; Gas Prices Expected To Be Higher In 2018




The Great Smoky Mountain Journal Staff, Wire Reports Posted: Monday, December 31, 2018 04:29 PM

AAA: 2017 GAS PRICES WERE HIGHEST IN 3 YEARS; Gas Prices Expected To Be Higher In 2018
NASHVILLE, Tenn., (January 3, 2018) — In 2017, gas prices in Tennessee averaged $2.18, which was the highest annual average in three years. The upward trend has continued into 2018, as gas prices had the most expensive start to the year in four years. Tennessee gas prices averaged $2.26 on January 1, averaging 13 cents more than the year before. Today's state average of $2.27 is 3 cents more than last week and 13 cents more than this time last year. The most expensive gas price averages in Tennessee are in Jackson ($2.32), Nashville ($2.28), and Memphis ($2.28) The least expensive gas price averages in Tennessee are in Chattanooga ($2.20), Clarksville-Hopkinsville ($2.20), and Cleveland ($2.23) "After a quick jump at the pump last week, prices are relatively stable right now across the southeastern U.S., and should begin to take a downward turn soon," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Gas prices normally decline during January and February, as gasoline demand hits the lowest levels of the year. The pump-price plunge has faced resistance from oil prices which have been trading at 2-year highs. Oil analysts believe the oil market is somewhat inflated due to geopolitical tensions and supply concerns, but prices should decline soon." Annual Average Price of Gasoline National Florida Georgia Tennessee 2017 $2.39 $2.37 $2.29 $2.18 2016 $2.12 $2.12 $2.07 $1.95 2015 $2.40 $2.36 $2.29 $2.16 2014 $3.34 $3.34 $3.26 $3.13 OIL AND GAS PRICES TO BE HIGHER IN 2018 Energy prices will be higher this year, according to the Energy Information Administration. The EIA expects gas prices to average $2.51 in 2018, 12 cents more than the annual average in 2017. The EIA also projects oil prices will average $52.77 per barrel, nearly $2 more than last year's average. Oil analysts at Moody's Investors Service expect crude oil prices to remain at $40-$60 per barrel. Oil prices got a boost toward the end of 2017, carrying into 2018. Crude settled above $60 during the last two sessions - the highest daily settlements since mid-2015. The late-year boost was due to multiple supply disruptions like the North Sea Forties and Libyan pipeline outages, protests across Iran, and the cold snap across the U.S. increasing demand for heating oil. Fortunately, the pipeline issues have been resolved, and the protests do not appear to be impacting oil production. This should help reduce the upward pressure on oil prices. 2017’s increasing oil prices, especially in the fourth quarter, led to increased investment in production and drilling. This allowed the U.S. to reach its highest crude production level — 9.637 million b/d (October) — since April 1971, officially confirmed by EIA last week. This represents a roughly 10 percent gain from the same month in 2016 and a 167,000 b/d increase from September 2017. For 2018, U.S. crude production is expected to hit 10 million b/d for the first time ever, helping the country to meet domestic demand and expand its export prowess to countries that have growing energy demands around the globe. The total number of active rigs, 747, is 222 more than the total active number of rigs at the beginning of 2017. No active oil rigs were added last week, according to Baker Hughes, Inc. 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 near you. 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. CURRENT AND PAST PRICE AVERAGES Regular Unleaded Gasoline Sunday Saturday Week Ago Month Ago One Year Ago Highest Price on Record National $2.485 $2.486 $2.447 $2.479 $2.353 $4.114 (7/17/2008) Florida $2.446 $2.443 $2.374 $2.440 $2.413 $4.079 (7/17/2008) Georgia $2.353 $2.350 $2.279 $2.345 $2.256 $4.164 (9/15/2008) Tennessee $2.268 $2.263 $2.237 $2.283 $2.140 $4.118 (9/15/2008) Click here to view current gasoline price averages