Saudi Pipeline Closure Could Fuel Price Spikes
A drone strike has damaged a critical Saudi pipeline, which is expected to remain closed for at least a month or more. This has led to concerns about fuel price spikes in the US and Europe. According to petroleum consultant Andrew Lipow, without access to the pipeline capable of moving 7 million barrels of crude oil per day, Saudi Arabia has few options left.
‘If Saudi Arabia is able to bypass the pipeline pump stations, then we may be able to see them restore operations at 50% capacity in the next few days. However, if they need to repair the pump stations in order to restart the pipeline, then it could be one to two months,' Lipow said.
The national average gas price has already hit $4.46, with diesel reaching a record high of $6.44. California is experiencing the highest diesel prices in the nation, averaging $8.39.