Consumer Watch: Oil Prices Spike After Attack On Global Supply

Photo: Pixabay

WASHINTON – An attack on a major global supplier of oil is having a major impact on gas prices here at home.

U.S. oil prices had their biggest spike in a decade following this weekend’s attack on Saudi Arabian crude facilities. Although, it’s not just pain at the pump, the airline industry is also feeling the pinch.

Saudi Arabia-owned Aramco Facilities were badly damaged in air strikes over the weekend.

That attack disrupted 5-percent of the daily global oil supply and it’s creating a ripple effect here at home.

On Monday oil prices spiked nearly 15-percent, the biggest jump in more than a decade.

Experts say the attack could impact the global supply of crude oil for several months believing gas prices will likely “creep up” this fall instead of drop steadily like they tend to do historically.

Air travelers may soon also feel the shock of soaring prices. In response to the looming surge in fuel prices, airline stocks around the world were hit hard.

American Airlines, United, Delta and Southwest were all trading in negative territory. Germany’s Lufthansa and Air France both closed lower.

It may be a matter of time before airlines pass those costs on to consumers. Meanwhile, the U.S. may tap its emergency oil supply to keep prices from rising too sharply.

Although, experts say the long-term impact will depend on how long it takes the Saudis to get fully back on line.


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