Gas prices on the rise after attack knocks out 5 percent of global oil production

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LEXINGTON, Ky. (WKYT) - An attack on a Saudi Arabia oil facility will likely have impacts on Kentuckians purchasing gas.

Gas prices at two Lexington gas stations on September 16, 2019. (WKYT)

The group behind the strike is threatening more attacks, and the facility that was damaged is responsible for five percent of the world's oil supply.

President Donald Trump has authorized tapping into the U.S. strategic oil reserve to keep gas prices down domestically, but there are already signs of increased costs in Lexington.

AAA is taking a look at how the international problem will affect your wallet.

"We're still seeing that unrest in other areas of the world will impact our prices here at home," Lori Weaver Hawkins with AAA said.

Hawkins said the amount prices will go up is unknown, but the organization is making an estimate.

"That could actually result in maybe even a quarter of an increase, 25 cents of an increase, before the month is out," Hawkins said.

Kentuckians have enjoyed lower gas prices in recent months, and other factors like decreased winter demand and a different gasoline blend during the cold weather season will make prices cheaper, but eyes will remain on the Middle East for factors that will keep prices higher.

"The sooner they get back online the less of an impact they're going to have, especially long term," Hawkins said. "It depends on how big that spike is, so if we see a big initial impact and those prices climb up a bit than this will last just a little bit longer."

The national gas price average is 28 cents cheaper than it was in mid-September of 2018.



 
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