Iowa Gas Prices Spike Following Saudi Attacks
If you went to fill up your vehicle yesterday at a gas station you no doubt noticed the price of gas went up. And not 'up' by two or three cents. UP by nearly 20! The trickle-down effect of the attack on Saudi Arabia's oil fields officially reached Iowa. The attacks last week shut down nearly half of the Saudi oil production or nearly 5% of worldwide oil production.
Many question gas prices rising by some 20 cents per gallon when crude oil prices have barely risen three dollars a barrel. Experts say that the price hike is like a temporary tax on everyone, taking some of the spare money you had and forcing you to put it in your gas tank instead. But fortunately, the price hikes should be short-lived.
Patrick DeHaan with GasBuddy says that as long as there is no further instability in the Middle East, prices should even out. He noted that Saudi Arabia has already regained some of its production capabilities. DeHaan sees prices leveling off by this weekend, and hopefully decreasing by next week.