AAA: Tennessee Gas Average Falls to $2.68

Tennessee gas prices fell three cents last week, bringing the state average to $2.68 per gallon of regular gasoline. Prices are 10 cents lower than a month ago and 11 cents below last year. With this decline, Tennessee drops to the tenth least expensive market in the nation. The national average also declined, dropping five cents to $3.03 per gallon. Factors behind the decrease include falling crude oil prices, lower gasoline demand, and cheaper winter-blend fuel. The tropics have remained quiet, with no storms affecting prices. According to the Energy Information Administration (EIA), gasoline demand decreased from 8.91 million barrels per day to 8.45 million, while total domestic gasoline supply slightly fell to 218.8 million barrels. Gasoline production averaged 9.4 million barrels per day. WTI crude oil closed Wednesday at $58.27 per barrel, down 43 cents. U.S. crude inventories rose 3.5 million barrels to 423.8 million, about 4% below the five-year average for this time of year. In Tennessee, the most expensive metro markets were Nashville at $2.73, Cleveland at $2.72, and Jackson at $2.71, while the least expensive were Clarksville at $2.56, Chattanooga at $2.62, and Morristown at $2.63.