Saudi Oil facility attack causes gas prices to rise

NOW: Saudi Oil facility attack causes gas prices to rise

SOUTH BEND, Ind.--- The attack on a Saudi oil facility on Saturday is affecting gas prices across Michiana. In South Bend, the average price of a gallon of gas is $2.65, up $0.13 from last week.

The reason behind this rise in prices is the decline of oil production from Saudi Arabia because of the attack.

"Oil is a global commodity and as a result of the five million barrel decline in Saudi oil production from the attacks, it has affected any country that buys and consumes oil," said Patrick DeHaan, Head of Petroleum Analysis for GasBuddy.

Saudi officials are optimistic that production will return to normal numbers sooner than previously expected. DeHaan believes that gas prices shouldn't spike as high as they did during the BP oil spill. 

"I think we’ve already seen our highest price of 2019, it should not get that bad again," said DeHaan. "What you may feel like is this will be more like spring where prices may hike up every few days but we likely will not surpass $3 a gallon."

 

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