SoCal Gas Prices Could Jump By 50 Cents A Gallon After Attack On Saudi Refinery
LOS ANGELES (CBSLA) - A drone attack on a Saudi gas refinery that has sent oil prices skyrocketing could hit the Southland particularly hard.
Saudi Arabia said the Sunday attack cut its oil supply in half, disrupting the production of 5.7 million barrels a day, the equivalent of roughly 5% of the world's daily supply.
The predawn attacks Saturday were claimed by Iranian-backed Yemeni rebels, although there are questions about whether the drones were launched from Yemen.
Saudi Arabia has been at war with the Houthis in Yemen since early 2015.
Analysts said while it may take some time to show up at the pump, the disruption could force gas prices in Southern California higher by more than 50 cents per gallon in the coming days.
"We do know that many drivers can expect to pay more in the pump in the coming days," Doug Shupe, spokesperson for AAA, said. "And in fact, in some areas, these price increases at the pump could be as a much as a quarter per gallon over the course of a month."
As of midday Monday, global oil prices moved 10% higher after the attack on the heart of Saudi Arabia's oil infrastructure.
The White House says President Donald Trump is still weighing his options when it comes to potential talks with the Iranian President later this month at the UN General Assembly.