Attack on Saudi oil plant could lead to rise in gas prices

 

Gas prices are inching up following attacks on Saudi oil fields that U.S. officials said originated from Iran.

"It could affect many families with their travel plans, especially coming up on the holidays," said Lora Abramowitch of Wyomissing.

One woman we spoke with said her gas points are coming in handy.

"We have a Redner's rewards card and that saves us on gas," said Florence Long of Leesport. "That's why I come to Sunoco, [because] I get the savings here, so today I filled up with $2.40 a gallon."

AAA said the average price for a gallon of regular gasoline in Berks County is $2.70, up six cents from the day before.

Clerks at a Sunoco on Park Road in Wyomissing said a gallon of regular jumped from $2.65 to $2.95 in just two days.

"What happens in Saudi Arabia and that part of the Persian Gulf impacts prices in Reading, Pa.," said Farhad Saboori, an economics professor at Albright College in Reading. "I don't think its going to stay high. Saudi Arabia announced by the end of this month they're going to fix it, obviously with the help of the United States."

But, he's concerned that tensions might, depending on how the United States decides to respond.

"Taking military action would cause further major disruption of oil, Saboori said. "In that case, it could hit $70, $80 [per barrel]."

Saboori said being less dependent on foreign oil is an advantage for the U.S., but ongoing concerns about a potential recession only make quick conflict resolution more dire.

AAA said average gas prices last year are still 30 cents more than the average this year.

Officials said half the production knocked offline in that attack in Saudi Arabia has been restored.