Crude Oil Driving Up Gas Prices In East Tennessee

Knoxville (WVLT) - Soon you could have to empty more from your wallet to fill your gas tank.

The price of crude oil has fallen from a record high of more than $90 a barrel on Friday, but only by about $2.00.

Right now, a gallon of regular unleaded will cost you anywhere from about $2.62 to $2.69 a gallon.

$2.69 is the state average.

But here's the catch.

Crude oil prices have been high for several months.

Prices at the pump have stayed about the same.

Triple-a says two main factors sent crude oil prices soaring.

First, the weak u-s dollar.

Second, worries that tensions between turkey and kurdish rebels in northern iraq could limit supplies.

So, oil's going up, why not gas?

Triple-a says companies have had high inventories, and they've cut into their profits.

Spokesman, Don Lindsey says, "The oil companies have been cutting into their profit margin because they've been selling gasoline at a lower price than they've been buying oil to make gasoline. The higher the crude product, eventually, something's got to give."


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