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Drone strikes on two key Saudi Arabian oil facilities last weekend could lead to higher gas prices in the U.S. But how long will this trend last?
The attacks, which targeted one of the world's largest oil facilities, removed about 6% of the global oil supply. This caused oil prices to surge more than 14% immediately, marking the largest one-day price jump in over three decades, as reported by CBS News.
Despite the price increase in crude oil, the impact on gas prices at the pump is expected to be moderate. The current national average gas price is $2.592, according to AAA. Jeanette Casselano, AAA spokesperson, stated that 'Americans can expect local pump prices to rise this week, with an increase of up to a quarter per gallon possible throughout the month.'
The quicker the facilities resume production, the less impact you'll experience. Saudi officials announced on Monday that they expect to restore at least a third of the lost output this week, as reported by the Wall Street Journal. However, a full recovery of the attacked facilities may take several weeks.
Gas prices had been on a downward trend since the end of the summer travel season, according to CBS News, so the changes at the pump might not be immediately noticeable. The national average price is currently 7 cents lower than it was a month ago and 28 cents lower than last year, as per AAA data.
The last significant slowdown in oil production and the sharp rise in crude prices occurred in August 1990, when Iraq invaded Kuwait. This event caused gas prices to spike by an average of four cents within just two days, with some areas seeing a 14-cent increase per gallon. However, despite the ongoing conflict in the Persian Gulf, the oil price shock was brief, and gas prices returned to normal by spring 1991.
Prices may stabilize and return to typical levels within a few weeks following the weekend's attacks.
