How Long Will Gas Prices Go Up?
The attacks on two of Saudi Arabia’s oil plants over the weekend could spell higher gas prices here in the United States. But how long?
Drone attacks, which damaged one of the world’s largest oil facilities, took away about 6% of the world’s oil supplies from the market. Oil prices jumped more than 14% almost immediately, the largest one-day jump in more than 30 years, according toCBS News .
But the changes to the pump are not expected to be major due to rising prices for the crude oil needed to make gasoline. According to AAA, today the average gas price in the country is $ 2,592. “Americans can expect local pump prices to start rising this week. The jump could be as much as a quarter per gallon over the course of this month, ”Janet Casselano, an AAA spokesman, said in a statement .
The sooner the equipment returns to production, the less the consequences for you. Saudi Arabian officials said Monday they could completely replace at least a third of that production this week, according to the Wall Street Journal . The complete recovery of the attacked objects can take several weeks.
CBS News notes that gasoline prices have been dropping since the end of the summer tourist season, so you might not notice much of a difference at your local gas station. According to AAA, today’s average gas price in the country is 7 cents cheaper than this time last month and 28 cents less than this time last year.
Oil production last slowed to this level and oil prices reached such high levels in August 1990 when Iraq invaded Kuwait. The event saw gasoline prices rise an average of four cents in just two days, with some prices rising 14 cents a gallon. But even as the Gulf conflict continued, the oil price shock was temporary: by the spring of 1991, high gas station prices were falling.
Prices could return to normal within a few weeks after the weekend attacks.