Chattanooga gas prices jump above $2 for first time since last summer

Average gasoline prices in Chattanooga rose above $2 a gallon this week for the first time since the end of last summer.

Gas prices rose an average of 12.2 cents per gallon in the past week, averaging $2.05 per gallon on Sunday in Chattanooga, according to GasBuddy's daily survey of 170 gas outlets in Chattanooga. This week's prices are the highest in Chattanooga since last August.

Although local gas prices rose faster than the U.S. as a whole, Chattanooga fuel prices still average 17 cents per gallon less than the U.S. average of $2.22 per gallon, GasBuddy surveys show.

Since the low reached in mid February, gas prices in Chattanooga have jumped 61 cents per gallon in the past two and a half months. But gas prices are still 36.4 cents per gallon below where they were a year ago and are $1.47 per gallon below where prices were two years ago.

"Gasoline and oil prices have set new yearly highs as the imbalance of supply and demand may begin to shift as global oil production shows signs of slowing and gasoline demand is accelerating," said Patrick DeHaan, a senior petroleum analyst for GasBuddy. "While oil inventories in the U.S. remain well-supplied for now, they are likely to start receding as refiners begin throttling up their operations after maintenance season."

Indeed on Monday, benchmark U.S. crude oil fell $1.14 to close at $44.78 per barrel in New York. Brent crude, which is used to price international oils, fell $1.54 to close at $45.83 a barrel in London.