Gas Prices Drop 1.6 Cents In Chattanooga

Gas prices fall now but could climb before New Year

Drivers can expect gas prices to continue to trend lower in the first few months of 2018, with potential to see the national gas-price average in the $2.25 to $2.35 range by February, AAA said. The average for Sunday was up 1.2 cents, according to GasBuddy's daily survey of 5,345 gas outlets in Ohio. Nationally, gas prices are 3 cents less than last week, 4 cents lower than one month ago and 30 cents higher than one year ago. "Oil prices are at their highest point of the year, preventing the typical seasonal plunge at the pump".

The national gas-price average was $2.51 as of November 27, or 38 cents more than this time in 2016, AAA said.

The state high for gas prices right now is in St. Francis at $2.65 while Galena has the state low at $2.13.

Gas is priced cheaper at some gas stations in Oklahoma, Texas and OH, but Hixson boasts the cheapest prices of any area in the Southeast. At the close of Friday's formal trading session on the NYMEX, West Texas Intermediate, a crude oil benchmark, increased 96 cents to settle at $58.36. That, and higher US oil exports, means supplies are at a premium.

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"With OPEC deciding last week to extend last year's agreement on oil production cuts, the future for gasoline prices isn't as rosy", said Patrick DeHaan, head of petroleum analysis for GasBuddy.

USA refineries switch late in the year to a winter blend of gasoline, which is less expensive to make because more steps are needed with the summer-blend to prevent excessive evaporation. USA oil inventories are already 100 million barrels lower than where they were past year as a result of the belt tightening, leading 2017's yearly average gas price to close out at the highest since 2014.

Historically, year-end gas prices "tend to be relatively cheap" due to a drop-off in fall gasoline demand around Labor Day and the move to "cheaper to produce" winter-blend gasoline in mid-September.

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