Despite Predictions of Lower Prices Gas Prices Up Over Past 7 Days

gas pricesThe price of oil moved higher last week and pulled gasoline prices up with it. The average price of gasoline rose 4 cents since October 31. Average prices in the southeastern U.S. also rose 8 cents in Tennessee.
This is one of what should be very few speed bumps in the road to lower gas prices as we close out the year,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Gas prices are forecast to remain low the rest of the year, but at their current lows, pump prices are vulnerable to modest fluctuations in the price of oil, which influences about two-thirds the price of gasoline.”
On October 27, the price of oil was $43.20 a barrel – the lowest closing price since August. Since that day, oil prices rose $4.70, peaking at $47.90 last Tuesday. Every $1 shift in oil prices typically brings a 2.4 cent shift in gasoline. That means the oil price increase could be responsible for an increase of as much as 11 cents at the pump, which may be a worst case scenario.
The most recent forecast from the U.S. Energy Information Administration has the price of gasoline averaging $2.11 this month and $2.03 in December. Last year, the average prices were $2.89 and $2.51 respectively.
This week the low price in Manchester has jumped to $1.88 per gallon and in Tullahoma the low price is a $1.93. The average price at the pump in Tennessee is $2.02.