Gas prices spike across Texas following attack in Saudi Arabia

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MGN Online

The statewide gas price average in Texas is $2.39 for a gallon of regular unleaded fuel, according to the AAA Texas Weekend Gas Watch. That price is 12 cents more than on this day last week and is 21 cents less per gallon compared to this day last year. Of the major metropolitan areas surveyed in Texas, drivers in El Paso are paying the most on average at $2.76 while drivers in Tyler and Wichita Falls are paying the least at $2.28 per gallon. The national average price for a gallon of regular unleaded is $2.67, which is ten cents more compared to this day last week and 27 cents less than the price per gallon at this same time last year.

Motorists across Texas and the country are seeing pump prices spike due to the loss of crude oil production in Saudi Arabia. Drone attacks on two major oil facilities – including the world’s largest, Abqaiq, have taken 5.7 million (crude) barrels per day off the market, accounting for about 6% of the global supply.

As markets adjust to the loss of crude from the Saudi Arabian facilities, the exact impact on gas prices will depend largely on the extent of the damage at the facilities and how long it takes for the facilities to resume normal operations. Saudi Arabia’s energy minister said this week that half of the oil production that was lost has been restored and normal production would resume by the end of September. If this proves true, any price spikes being realized now will be short-term.

Following the attack, crude oil prices spiked by as much as $8 per barrel but are fluctuating, and West Texas Intermediate is now trading about $4 higher per barrel more than on this day one week ago.

U.S. dependence on Saudi Arabian crude imports has decreased in the past decade. Meanwhile, Texas drivers are seeing weekly spikes by as much as 39 cents per gallon in El Paso and as low as four cents in Odessa. For now all Texas metro areas have gas price averages below the average on this day one year ago, with the exception of El Paso.

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