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NASHVILLE — Gas prices across Tennessee dropped for the second straight week, with the state average falling by seven cents compared to last week. As of Monday, the average price for a gallon of regular gas in Tennessee was $2.72 — the same as a month ago and 57 cents lower than one year ago.

“Crude oil prices fell even lower last week, which is likely contributing to the drops that we’ve seen at the gas pump,” said Megan Cooper, spokeswoman for AAA – The Auto Club Group. “Unless we see major changes in the crude oil market, it’s very likely the downward trend at the pump will continue this week.”

National Overview

Despite being a time of year when gas prices typically rise, national pump prices are trending downward due to market dynamics. After OPEC+ announced it would increase oil production by more than 400,000 barrels per day next month — exceeding expectations — crude oil prices have declined. The oversupply, paired with relatively low gasoline demand, is driving pump prices lower.

According to the Energy Information Administration (EIA), weekly gasoline demand fell slightly from 8.49 million barrels per day to 8.42 million, while total domestic gasoline supply decreased from 237.6 million barrels to 236 million. Gasoline production averaged 8.9 million barrels per day last week.

Oil Market Dynamics

At the close of Wednesday’s formal trading session, West Texas Intermediate (WTI) crude rose $2.77 to settle at $62.35 per barrel. The EIA reported a 2.6 million-barrel increase in U.S. crude oil inventories, which now stand at 442.3 million barrels — about 5% below the five-year average for this time of year.

Tennessee Regional Prices

• Most expensive metro markets: Johnson City ($2.85), Jackson ($2.78), Memphis ($2.78) 
• Least expensive metro markets: Cleveland ($2.57), Chattanooga ($2.61), Clarksville ($2.64)