Saudi Pipeline Closure Puts Fuel Prices on Edge
The Saudi pipeline, damaged by a drone strike, could stay closed for a month or more. This development has caused fuel price spikes, and experts warn that relief is unlikely to come anytime soon.
Bloomberg reported that Saudi Aramco told at least two European refiners they won't receive any crude oil from it next month due to the pipeline closure. The damaged pipeline can move 7 million barrels of crude oil per day.
Petroleum consultant Andrew Lipow said that if Saudi Arabia needs to repair pump stations, the pipeline could be closed for one to two months. However, if they bypass the pump stations, operations might resume at 50% capacity in a few days.
The national average gas price hit $4.46 on Friday, while diesel broke another record high of $6.44. California is experiencing the highest diesel prices in the nation, averaging $8.39.