Motorists To See Pump Price Spike

gas-price

On the week, the national gas price average held steady at $2.56, but motorists can expect some volatility at the pump in the coming days and weeks. 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.

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.

The average national price jumped 3 cents to $2.59 per gallon. While prices near $3 are concerning, though, they aren’t likely to impact the economy the way the $4 price in 2008 did for consumers, as oil prices spiked to more than $100 a barrel. Average price for a gallon of regular unleaded in Arkansas today is $2.31.     MORE

 

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