The attacks on Saudi Arabian oil production have not impacted Kansans at the pump to this point, but it will happen soon.
“Motorists should expect some volatility and likely higher prices at the pump in the coming days or weeks,” said Shawn Steward with AAA Kansas. “The big story over the weekend, Saudi Arabia experienced some drone attacks on two major oil facilities, including the world’s largest. Those attacks have taken 5.7 million barrels of crude oil per day off the market. That accounts for 6% of the global supply.”
Prior to the attacks, supply was healthy, but crude oil is trading well higher than it was last week.
“Since the price of crude oil accounts for at least 50% of the total retail price, as crude oil increase, so will the price that we’re going to be seeing at the pumps,” said Steward.
Though it’s too early to tell the specific impact on Kansas, it’s easy to see what factors will determine its duration.
“If the pump price increases are short or long term will be determined by two major factors,” said Steward. “The first one is how much crude oil prices rise and if those are sustained for a long period of time and then secondly, how long those Saudi Arabian oil facilities are down.”
Steward says we could see gas prices go up by as much as a quarter a gallon over the next month if nothing else changes. The average in Kansas Monday morning was $2.35 a gallon.