Gas prices could jump due to volatility in the Middle East.
Attacks using explosives and drones on two major oil facilities in Saudi Arabia will take 5.7 million barrels of crude oil off the market per day, which accounts for six percent of the global oil supply, according to AAA.
Advertisements
The attack and its effects are likely to cause an increase in prices at the pumps, the experts at AAA said Monday.
“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,” said Jana L. Tidwell, manager of public and government affairs for AAA Mid-Atlantic. “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.”
In the Philadelphia region, the average gas price on Monday was $2.71, down from $2.72 a week ago and a decrease from $3.07 a year ago.
Advertisements
AAA said the global crude oil supply was strong before the attacks, but the initial reaction to the attacks caused prices to spike.
The damage to the major oil facilities and how long they will be offline was not known as of Monday afternoon.
President Donald Trump approved a release of crude from the U.S. Strategic Petroleum Reserve to help ease the disruption. He also threatened retaliation against those who caused the attacks.
Advertisements
America’s dependence on foreign oil has decreased in recent years.
