International dispute could cause gas prices to spike in west Te - FOX34 Lubbock

International dispute could cause gas prices to spike in West Texas

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LUBBOCK, Texas -

The drone attacks on Saudi Arabia's Aramco sites is called the one of the largest disruptions to the oil market. These drone strikes took out close to six percent of the overall world production. According to recent reports production is already bouncing back, but gas prices could still go up.

"The markets have responded to that and right now the price of crude oil is just up 5 dollars," said Michael Noel, associate professor of economics at Texas Tech. "That translates to about a 12 to 15 cent per gallon increase and here in Lubbock we have already seen a 7 or 8 cent increase in the last couple of days so we are possibly half way there. "

Noel adds that anything that happens in Saudi Arabia has a direct impact here in the U.S. Uncertainty looms as to what will happen next. 

If the supply shock lasts for too long, President Trump has already approved tapping into the country's stockpile of crude. Secretary of Energy Rick Perry said Monday that it is too soon to tell whether we'll need the strategic petroleum reserves to level out markets.






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