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Gas prices hit new 2018 low

Staff Report • Dec 3, 2018 at 5:00 PM

NASHVILLE – Motorists in Tennessee and across the country are currently enjoying the lowest gas prices of the year.

Gas prices in Tennessee have declined 45 cents over the last seven weeks, according to AAA. Sunday’s state average of $2.24 is 10 cents less than a week ago, while the national average of $2.47 is 9 cents less than last week and 2 cents less than the previous 2018 low.

“Compared to when pump prices peaked in May, Americans are now saving an average of $5-$10 every time they go to the pump,” said Mark Jenkins, AAA spokesman, in a press release. “Plunging oil prices have made gasoline far less expensive to produce. Oil prices sank to 14-month lows, because there's so much oil in the global market and not enough demand to absorb it.

“OPEC and Russia hope to change that. They meet on Thursday to discuss a production cut, in hopes of boosting oil prices. A significant cut could have an immediate impact on gas prices, but to what extent will depend on how the oil market responds.”

Most expensive gas prices in the state

• Nashville ($2.35)

• Johnson City ($2.33)

• Morristown ($2.28)

Least expensive gas prices in the state

• Cleveland ($2.04)

• Chattanooga ($2.09)

• Knoxville ($2.19)

Oil and gasoline dynamics

Domestic crude oil production remains at a record-high 11.7 million barrels per day, which is 21 percent more than last year, AAA reported. Domestic oil supply increased for the 10th consecutive week, and supply levels are the highest since this time last year.

Gasoline production also remains strong. Demand is steady, and supplies are nearly five percent stronger than a year ago, according to AAA.

To view daily gas price averages, visit GasPrices.AAA.com.