Better Ask Barry: Will gas prices go up after Saudi oil attacks?
Saturday’s drone attacks on two Saudi Arabian oil facilities caused a spike in world oil prices Sunday, and will bring a sharp increase in gasoline prices in the days and weeks ahead.
The attacks reportedly cut the Saudi facility’s production capability in half.
It won’t take drivers long to notice.
“We’ll see most of the impact start showing up at pumps tomorrow into Wednesday,” said Patrick Dehaan, with gasbuddy.com.
In Salinas, a driver name Ezekiel said he was already paying more.
“Today it went up. This was like 10 cents cheaper!”
The price of crude oil spiked by as much as 19 percent Sunday. The spike had eased to just over 12 percent by Monday.
Saudi officials expect to have oil production restored quickly, but long term worries over the region’s stability could keep higher gasoline prices around longer.
“Today, we’re at about $61 a barrel. If we start inching up towards the $65-70 mark, we could very well see gas prices increase another 25 cents, even more, depending on that crude price point,” said Jeannette Casselano, with AAA.
That is not something drivers want to hear.
“I’m a commuter. I go to school in Monterey, so commuting from Greenfield to the Seaside/Monterey area is a lot. If it goes up, I would probably be looking to public transportation, if that’s possible,” said Lupita Gonzales.
It may come as little comfort, but gasoline prices have been heading lower with the end of the summer driving season. Experts say that might make it easier to withstand a short-term price hike.
