SAN FRANCISCO (KPIX 5) — Prices at the pump in the Bay Area could jump at least 10 cents a gallon as a result of this weekend’s drone attacks on oil sites in Saudi Arabia.
The spike may not happen overnight, and if production gets back online fairly soon, the effects may be short term, according to energy analyst Dan McTeague.
“The prospect here is that we may not see as big an impact. It’s a very serious matter, but circumstances are very different than they were 10 years ago, let alone 30 years ago, when Saudi Arabia was truly the kingpin,” said McTeague.
McTeague said American production in recent years has increased.
President Donald Trump tweeted Sunday that he’s ready to release oil from the strategic petroleum reserve, if it’s needed. He said the U.S. believes it knows the culprit behind this attacks and is “locked and loaded” depending on verification from the Saudi kingdom.
Yemen’s Houthi rebels claimed responsibility for the attacks, while Iran denied Secretary Mike Pompeo’s accusations.
“I think Secretary Pompeo’s statements yesterday were absolutely right. I think it’s very clear this was the Iranians,” said Rep. Liz Cheney, (R-Wyoming).
Saudi Arabia says the attack cut its oil supply in half, disrupting the production of 5.7 million barrels a day, or more than 5 percent of the world’s daily supply.
“I never really know what makes it go up and down. I do drive a lot, so it definitely affects me. So I guess it’s a bummer, but i’ll wait and see what does truly happen,” said John Miles of Murphys.
The White House says the President is still considering his options when it comes to potential talks with the Iranian President later this month at the UN General Assembly.