Cheapest gas prices in U.S.?

Maybe, but cost is heading up

By Tim Siniard
Posted 9/17/19

Despite rising oil prices caused by coordinated drone attacks on several key oil facilities in Saudi Arabia over the weekend, gas prices in Cleveland and Bradley County remain the lowest in …

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Cheapest gas prices in U.S.?

Maybe, but cost is heading up

Posted
Despite rising oil prices caused by coordinated drone attacks on several key oil facilities in Saudi Arabia over the weekend, gas prices in Cleveland and Bradley County remain the lowest in Tennessee, with some gas stations selling fuel for as low as $1.99 per gallon on Tuesday.
 
According to reports, Cleveland's gas prices were among the lowest Monday across the nation.
 
However, prices at some stations rose overnight.
 
As of 5 p.m. Monday, the lowest price for regular unleaded fuel in Cleveland was $1.99 per gallon at BP, Shell, RaceTrac, Speedway and Raceway, all on 25th Street, as well as Murphy USA and BP on Keith Street, according to the website, GasBuddy.com. The average price per gallon was $2.070.
 
Buy by 7 a.m. Tuesday morning, RaceTrac on 25th Street had raised its price to $2.1990 per gallon. Shell, located across the street, was still selling its fuel for $1.99 per gallon. BP on 25th Street was still selling fuel for $1.99 per gallon as of 8 a.m. Tuesday morning.
 
The highest price as of Tuesday morning, according to GasBuddy, was $2.19 per gallon at Ameritrust Financial and Fuel on Keith Street.
 
According to AAA, Tuesday's average price of fuel in the United States was $2.592 per gallon. In Tennessee, the average price was $2.316 per gallon, up 42 cents per gallon from Monday.
 
In 2008, the highest recorded average fuel price in Cleveland was $4.56 per gallon. The lowest recorded average was $1.437 in 2016.
 
The lowest average this year was $1.804 in January, followed by $2.564 per gallon in April.
 
The average price per gallon Monday in Polk County was $2.264, followed by $2.121 in Hamilton County. 
 
Media sources reported the attacks have hamstrung 5.7 million barrels of daily crude oil production in Saudi Arabia.
 
According to the Associated Press, the kingdom’s “energy minister confirmed that attacks on its oil facilities knocked out about 50% of the country’s production.”
 
In addition, the AP reported that United States Secretary of State Mike Pompeo blamed Iran for the “attacks against Saudi Arabia’s oil infrastructure.”
 
The attacks are attributed to Iranian-backed Houthi rebels in Yemen.
 
Jeanette Casselano, AAA spokesperson on Monday said Americans can expect local pump prices to start to increase this week.
 
"The jump could end up being as much as a quarter per gallon throughout this month,” she said. “Whether this is a short or long term trend will be determined by the price of crude oil prices and how quickly the facilities in Saudi Arabia can recover and get back online.”
 
Oil prices spiked Monday, but "moderated as traders analyzed the likely longer-term implications," according to the AP.
 
"By late morning in Asia on Monday, U.S. crude oil was up $4.89 per barrel, or 8.9%, to $59.73 per barrel early Monday in electronic trading on the New York Mercantile Exchange," the AP reported. "Brent crude, the international standard, surged $6.02 per barrel, or 10%, to $66.25 per barrel."
 
Earlier on Monday, U.S. crude jumped more than 15% and Brent leaped nearly 20%.
 
However, increased oil production in the United States over the past decade may provide a respite for those bracing for rising prices at the gas pump.
 
Jim Burkhard, who heads crude oil research for IHS Markit, told the AP the U.S, "has a cushion because it and Canada both produce plenty of oil, leaving the U.S. less reliant on the Middle East."
 
However, the attacks may affect the market as a whole.
 
"If you take oil anywhere out of system it affects everybody," Burkhard said.

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