Gas prices fell in Chattanooga for a third consecutive week last week, dropping another 7 cents per gallon to an average $2.01 per gallon, according to GasBuddy's daily survey of 170 gas outlets in Chattanooga.
Regular gas today is selling as low as $1.91 per gallon locally at Circle K station on Signal Mountain Road.
Chattanooga motorists are enjoying some of the cheapest prices in the country with the price of regular gas in Chattanooga averaging 33 cents per gallon less than the U.S. average and 10 cents a gallon below the statewide average in Tennessee, GasBuddy.com said
Local gas prices were 8.1 cents per gallon below a month ago and were 2.2 cents per gallon lower than a year ago. Prices at the pump, which normally increase as the heavy summer travel season approaches, have uncharacteristically declined this year due to falling oil prices.
"Gasoline prices in much of the country are eroding at a time of year when such a downward fall is anything but par for the course," said Patrick DeHaan, senior petroleum analyst for GasBuddy.com. "This year's usual spring rally has been the weakest in recent memory."
Chattanooga gas prices are 17 percent lower than they where two years ago at this time of the year and are 43 percent below where they where five years ago.
Oil prices rebounded some today after Saudi Arabia's energy minister said an OPEC-led production cut scheduled to end in June would likely be extended to cover all of the year. Khalid Al-Falih said today that oil markets were rebalancing after years of oversupply and he still expects OPEC to reach an agreement to cut production during the first half of the year to be extended.
U.S. West Texas Intermediate (WTI) crude futures were trading up 30 cents per barrel this morning to $46.52 per barrel.
Still, both Brent and WTI crude are holding below $50 per barrel amid ample supplies.
U.S. drilling also continued to pick up last week, with the rig count climbing by six more rigs to 703.
Since a low point in May 2016, U.S. producers have added 387 oil rigs, Goldman Sachs said.
"The recent drop in crude oil is posing a much more serious threat and OPEC must soon decide how much market share it will sacrifice to keep oil prices higher," DeHaan said. "Clearly the last cut just isn't enough."
DHaan said the weak state of the oil industry creates a market "perfect for motorists planning summer road trips."