Saudi Pipeline Closure Triggers Fuel Price Spikes in US
Fuel prices in the US are expected to continue rising due to a critical pipeline closure in Saudi Arabia. The pipeline, which can move 7 million barrels of crude oil per day, was damaged in a drone strike and may not be restored for one to two months. This has led to concerns about global oil supplies and potential fuel shortages.
According to petroleum consultant Andrew Lipow, if the pipeline cannot bypass its pump stations, it could take up to two months to repair. However, if they can bypass the pump stations, operations may be restored at 50% capacity in a few days.
The closure is exacerbating existing fuel price hikes, with the national average gas price reaching $4.46 and diesel breaking another record high of $6.44 on Friday, according to AAA. California is experiencing the highest diesel prices in the nation, averaging $8.39.