Saudi Pipeline Closure Could Lead to More Fuel Price Spikes
A major Saudi pipeline remains closed after a drone strike damaged it, and experts say this could lead to more fuel price spikes in the coming months. The pipeline is capable of moving 7 million barrels of crude oil per day, and its closure has left Saudi Arabia with few options for transporting oil to European refiners. Without access to the pipeline, these refiners will not receive any crude oil from Saudi Aramco next month.
Petroleum consultant Andrew Lipow estimates that it could take one to two months to repair the pipeline, although Saudi Arabia may be able to restore operations at 50% capacity in a few days if they bypass the pipeline pump stations. The national average gas price has already hit $4.46, and diesel prices have broken another record high of $6.44.
The issue is particularly concerning for American drivers, who are already feeling the pain of high fuel costs. According to a recent Fox News poll, 61% of registered voters consider gas prices a major problem, a 13-point jump from two years ago. The extra cost of gas and diesel since the start of the Iran war has been estimated at $460 and $378 per household, respectively.