Expect volatility in oil markets following the weekend attacks in Saudi Arabia.
Jim Bower of Bower Trading says volatility “is going to heighten tremendously” over the next few weeks because of the attack.
Bower says the drones had a cost of approximately $15,000 and suggested “oil facilities can and will receive further attacks in the future,” because its “simply too easy to do.”
The facility attacked by drones and reportedly cruise missiles over the weekend produces roughly six percent of the world’s oil supply.
The U.S. Energy Department has said it is willing to release oil from the strategic oil reserves if needed.
Oil prices Monday briefly spiked 19 percent, the biggest spike since the 1990-1991 invasion of Kuwait by Iraq.
The attacks also represent the largest disruption of maximum daily supply loss in history.
Officials at GasBuddy, a crowdsourced, real-time fuel price reporter, predict prices will increase 10-25 cents per gallon.
Additionally, prices could increase higher depending on how long it takes to restore production at the attacked facilities.
