ATTACK ON SAUDI ARABIA OIL FACILITIES EXPECTED TO PRODUCE SHORT-TERM PRICE SPIKE

Posted: September 16th, 2019

Last weekend’s attacks on two major oil facilities in Saudi Arabia have taken 6 percent of global oil supply off the market, and the result could be higher prices for consumers at the gas pumps, at least in the short term, says AAA Northeast.

            “Right now, AAA is forecasting that Americans can expect local pump prices to start to increase this week,” said Mary Maguire, Director of Public and Legislative Affairs. “Whether this is a short or long term trend will be determined by the price of crude oil and how quickly the facilities in Saudi Arabia can recover. Damage to the facilities is still being assessed, but there is no word if it will be days, weeks, or even months before the infrastructure in repaired and back online.” AAA estimates the jump could be as high as a quarter per gallon over the course of the month.

            There was no immediate impact as prices in Massachusetts are down three cents this week, according to AAA Northeast.

AAA’s September 16 survey of prices in Massachusetts finds self-serve, regular unleaded averaging $2.52 per gallon. The Massachusetts price is four cents lower than the national average for regular unleaded of $2.56. A year ago at this time, the average price in Massachusetts was thirty-two cents higher at $2.84.  

The range in prices in the latest AAA survey for unleaded regular is 91 cents, from a low of $2.14 to a high of $3.05. AAA advises motorists to shop around for the best prices in their area, and to make sure they and their passengers buckle up — every time.

Today’s local gas prices and their ranges are as follows:

Self Serve                                           Grade                        

$2.52 ($2.14-$3.05)                            Regular Unleaded                  

$2.83 ($2.59-$3.15)                            Midgrade Unleaded               

$3.01 ($2.75-$3.39)                            Premium Unleaded                

$2.94 ($2.65-$3.29)                            Diesel 

            Find the most up-to-date local gas prices with the AAA Fuel Finder by visiting AAA.com/FuelFinder.