CHARLOTTE, NC – Motorists across the Carolinas woke up to slightly higher prices at the pump today, following the recent attacks on Saudi Arabian oil facilities.
North Carolina’s $2.36 average is up two cents from yesterday and South Carolina’s $2.25 average is up three.
“As we expected, prices are on the rise due to the major facility shutdowns in Saudi Arabia,” said Tiffany Wright. “This trend will likely continue, but whether this increase will be short or long-term will be determined by how quickly the facilities can recover and get back online.”
Over the weekend, Saudi Arabia experienced drone attacks on two major oil facilities – including the world’s largest, Abqaiq. The attacks have taken 5.7 million (crude) barrels per day off the market, accounting for about 6% of the global supply.
Damage to the facilities is still being accessed, but there is no word if it will be days, weeks or even months before infrastructure is repaired. To ease concerns, President Trump said he has authorized the release of crude from the Strategic Petroleum Reserve. Other Saudi-oil-consuming countries also have emergency reserves to help back-fill the global loss, if needed.
Prior to the attacks, global crude oil supply was very healthy, in fact sitting on a global glut of stocks. Regardless, initial market reaction to the attacks spiked crude oil prices. At the start of the work week, crude oil (West Texas Intermediate, WTI) is trading for $5/bbl more than on Friday’s closing, up to $61/bbl – a price point for crude not seen since May.
Gas price averages across the nation can be found HERE.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.