“Attacks have taken about 5.7 billion barrels of oil off the market, which is about six percent of the global supply,” he says. “Prior to that, crude oil was healthy around the country. In fact, we were sitting on a global glut.”
Last weekend, gas prices were around $2.40 a gallon. Experts predict the price will jump about 25-cents by the end of September. Peterson says how long the higher prices last depends upon how long the Saudi facilities are down.
“Suffice it to say, we’re going to see some increases at the pump,” Peterson says.
Wholesale gasoline prices were 15 cents a gallon higher nationwide by midday Monday. President Trump has said he’s prepared to tap U.S. petroleum reserves if oil production in Saudi Arabia doesn’t rebound quickly.
(By Pat Powers, KQWC, Webster City; additional reporting by Radio Iowa’s O. Kay Henderson)