Gas Prices Rise After Saudi Arabia Oil Strike

Tuesday, September 17th 2019, 7:29 am
By: Tess Maune

Around the Tulsa metro Tuesday morning, drivers are already feeling the impact of the Saudi oil strike this weekend and are seeing gas prices jump at local stations.

The average gas price around Tulsa right now is about $2.29 a gallon which is a 13 to 16 cent jump in just a day.

Gasbuddy's head of petroleum analysis says some parts of the country could see a 25 cent spike as early as today -- with the west coast likely to see the highest prices.

The U.S. Energy Secretary says the Department of Energy is prepared to release oil from the Strategic Petroleum Reserve to offset the attack's effects on global energy market.

Domestic gas prices are mostly linked to global supply and demand.  But experts say the attack could have "a permanent effect on the psyche" of energy market participants because it suddenly calls into question Saudi Arabia's role as a stable oil producer.

The extent of short and longer-term gas price increases will depend on how quickly Saudi Arabia is able to restore oil production. 

Experts say a prolonged disruption could have a "dramatic impact" on prices.