Drop in crude oil prices likely to stabilize gas prices, AAA reports

MEMPHIS, Tenn. — A drop in crude oil prices is likely to stabilize prices at the pump this week, according to AAA - The Auto Club Group.

For the fourth straight week, AAA reported the average gas price in Tennessee declined.

The Tennessee Gas Price average is now $3.10, which is 7 cents cheaper than one month ago and $1.20 more than one year ago.

“It’s too soon to tell if fears of a global economic slowdown caused by the Omicron variant will push oil prices lower for the long term,” said Stephanie Milani, Tennessee Public Affairs Director, AAA - The Auto Club Group. “But for now, the upward pricing pressure due to tightened supply and high demand seems to have abated, and that will likely result in pump prices stabilizing.”

Crude oil prices initially tumbled more than $10 to $68 a barrel on Friday after news of the Omicron COVID-19 variant broke. Meanwhile, consumers caught a little break as the national average price for a gallon of gas dropped to $3.39, down a penny since last week, AAA reported Monday.

According to AAA, Monday’s national average of $3.39 is a penny less than a month ago and $1.27 more than a year ago.

The Memphis metro market has the most expensive gas prices in Tennessee this week at an average of $3.14, according to AAA.

Monday, AAA reported Arkansas’ average gas price at $3.019. Mississippi’s average price was reported at $3.043.

Click here to view current gasoline price averages as reported by AAA - The Auto Club Group.