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AAA Carolinas: Crude Oil Prices Spike Following Attacks on Saudi Arabian Oil Facilities

Crude Oil Prices Spike Following Attacks on Saudi Arabian Oil Facilities
Carolinians can Expect Pump Price Jumps Coming to Stations as Soon as this Week
CHARLOTTE, N.C. (September 16, 2019) – Motorists can expect some volatility at the pump in the coming days and weeks. Over the weekend, Saudi Arabia experienced drone attacks on two major facilities – including the world’s largest, Abqaiq.

The attacks have taken 5.7 million (crude) barrels per day off the market, accounting for about 6% of the global supply.

“It is too early to know the full impact on pump prices in the Carolinas,” said Tiffany Wright, AAA Carolinas spokesperson. “What we do know is that Carolinians can expect local pump prices to start to increase this week. The jump could be as much as a quarter over the course of this month.”

North Carolina’s state average is $2.34 and South Carolina’s is $2.22, both down a cent on the week. AAA Carolinas will continue to monitor gas prices and will send out a press release later in the week with updated prices as necessary.

Whether this increase is a short or long-term trend will be determined by how quickly the facilities in Saudi Arabia can recover and get back online.

Damage to the facilities is still being accessed, but there is no word if it will be days, weeks or even months before infrastructure is repaired. To ease concerns, President Trump said he has authorized the release of crude from the Strategic Petroleum Reserve. Other Saudi-oil-consuming countries also have emergency reserves to help back-fill the global loss, if needed.

Prior to the attacks, global crude oil supply was very healthy, in fact sitting on a global glut of stocks. Regardless, initial market reaction to the attacks spiked crude oil prices.  At the start of the work week, crude oil (West Texas Intermediate, WTI) is trading for $5/bbl more than on Friday’s closing, up to $61/bbl – a price point for crude not seen since May.

Gas price averages across the nation can be found at www.gasprices.aaa.com

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at  AAA.com/mobile.

AAA Carolinas, an affiliate of the American Automobile Association, is a not-for-profit organization that serves more than 2.2 million member and the public with travel, automobile and insurance services while being an advocate for the safety and security of all travelers.

For more information on this press release, please contact:

Public Relations Manager
Tiffany Wright
tmwright@aaacarolinas.com
Work : 704-737-8306
Cell : 704-569-7768