Rising oil prices lead to increases at the pump, Kingsport-Bristol at state low | Rogersville

After almost a month of stable prices, consumers can expect higher prices at the pumps. Since last Monday, gasoline prices in Tennessee have risen an average of three cents.

Tennessee’s average gas price is now $3.02, two cents lower than a month ago and 89 cents higher than a year ago.

“Markets, in general, don’t like uncertainty and volatility, and the oil market is no exception,” said Stephani Milani, Tennessee public affairs director, AAA – The Auto Club Group. “Kazakhstan’s oil production cuts demonstrate that in times of supply shortages, it doesn’t take much to put upward pressure on the overall price of oil.”

Fast facts

64% of gas stations in Tennessee have prices below $3.00

The lowest 10% pump price is $2.81 for regular unleaded.

The top 10% of pump prices are $3.35 for regular unleaded.

National gas prices

Gasoline prices rose slightly last week, mainly due to the surge in crude oil prices, which are approaching $80 a barrel. Events on the other side of the globe are fueling the recent rise. Social unrest and violence in Kazakhstan, a member of the OPEC+ alliance, have forced that country to cut production. Prior to the recent outbreak of violence, Kazakhstan was pumping nearly 2 million barrels of crude a day. In contrast, the United States, as the world’s largest oil-producing country, pumped an average of 18.6 million barrels per day. Since the world price of oil is nearly half of what consumers pay at the pump, higher oil costs will generally lead to higher gasoline costs. The national average for a gallon of gas rose two cents to $3.30.

According to new data from the Energy Information Administration (EIA), total national gasoline inventories increased by 10.1 million barrels to 232.8 million barrels last week. On the other hand, gasoline demand fell from 9.72 million bpd to 8.17 million bpd. Typically, pump prices decline due to a drop in gas demand and an increase in total inventories, but continued growth in the price of crude oil has helped push up pump prices. As oil prices continue to climb near $80 a barrel, prices at the pump will likely follow.

The current national average of $3.30 is three cents lower than a month ago and $1.01 higher than a year ago.

National oil market dynamics

At the close of Friday’s official trading session, WTI was down 56 cents to settle at $78.90. Although prices fell on Friday due to fluctuations in contract prices at the start of the year and concerns about demand for the omicron variant of COVID-19, crude prices rose overall last week after the EIA reported that total national crude inventories fell by 2.1 million barrels last week. at 417.9 million barrels. The current level of inventories is around 14% lower than at the end of December 2020, which contributes to the pressure on domestic crude prices. For this week, crude prices could continue to climb if the next EIA report shows a further drop in inventories.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also plot a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.

Tennessee Regional Awards

Most Expensive Metro Markets – Memphis ($3.09), Nashville ($3.06), Morristown ($3.05)

Cheapest metro markets – Kingsport-Bristol ($2.92), Clarksville ($2.94), Cleveland ($2.97)

Steve R. Hansen