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Gas prices expected to rise after attack on Saudi oil facility

Updated: September 16, 2019 10:10 PM

An attack on an oil facility in Saudi Arabia is causing the price of oil to skyrocket.

Now there is concern here in Minnesota that prices at the pump will rise.

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"I think there's more fear driving right now than anything," Richard Bohnen said.

Bohnen is the owner of two gas stations in Minneapolis. Bohnen says oil prices jumped about 15 because because of the interruption.

"I think that the price will jump but it will eventually come back down," he said.


More from KSTP: 

Oil prices surge as attack on Saudi facility disrupts output

Saudi Arabia: Drone attacks knocked out half its oil supply


Bohnen is optimistic prices will stabilize because of the United States' lack of dependence on Saudi oil.

"I know that we've increased production in this country a lot and I believe that President Trump even talked about releasing the strategic petroleum reserves," he said.

Patrick Dehaan, of GasBuddy.com, says the production interruption in Saudi Arabia is important because it's affecting 5 million barrels a day of production, which is about 5 percent of global consumption.

"Don't let the 5 percent sound to low, it's certainly very meaningful," he said. "Oil is very sensitive to supply and demand changes simply because we consume 100 million barrels a day."

Dehaan says Saudi Arabia is a country that can increase output, but since they're being affected, there's no question gas prices will rise.

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Credits

Todd Wilson

Copyright 2019 - KSTP-TV, LLC A Hubbard Broadcasting Company

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