As demand wanes, gas price increase stalls

Johnson City Press • Updated Jul 22, 2019 at 6:16 PM

Tennessee’s state average gas price was $2.51 per gallon of regular unleaded gasoline Monday, two cents less than last week’s average, 16 cents more than one month ago and nine cents cheaper than one year ago.

Monday’s average in Johnson City was $2.48, while Kingsport and Bristol’s average was $2.51. 

According to AAA analysts, Monday’s national average of $2.76 was more than 10 cents more than a month ago but eight cents cheaper than last year. 

“Gasoline stocks remain robust amid a recent dip in demand, which could be one reason we are seeing pump prices starting to roll back,” AAA spokeswoman Jeanette Casselano said in a news release. “It is too soon to know if this is a long-term trend, but it is certainly a welcome relief for motorists.”

Concerns over the current excess of oil in the crude market coupled with concerns of increasing tension in the Middle East, following a Thursday announcement that a U.S. Navy ship had “destroyed” an Iranian drone in the Strait of Hormuz. However, Iran captured a British-flagged oil tanker in the region late on Friday, dramatically escalating tensions. If the tension continues to mount, oil prices could spike this week in response to concerns that global supply flows may be disrupted.

For more information on gas and oil market trends, visit www.gasprices.aaa.com