Gas prices in Michigan rise after Saudi oil attack

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MID-MICHIGAN (WJRT) (9/17/2019) - Michigan gas prices have been declining over the last month.

But that is all changing due to weekend attacks on two oil facilities in Saudi Arabia.

The national average prices only rose by 3 cents from Monday to Tuesday -- but across Michigan, prices have jumped as much as 40 cents.

"The Saudi Arabia situation is impacting gas prices across the nation and not just in Michigan but everyone," said Allison Mac, an analyst for GasBuddy. “Mainly because this touches upon oil prices -- and oil prices are the determining factor when it comes to gas prices are going to be.”

Oil prices jumped more than 15 percent following the attacks over the weekend, but started to drop again Tuesday. Mac said it's not the only cause for the increase -- and it's unique to the Midwest.

"It's called price cycling where one brand of a gas station in the area will decide to increase their prices and then everybody in the area will do the same," said Mac

But the big question is how long will the increases continue?

"We think prices will probably go up for the next week because when prices were $50 a barrel, now they're $60 a barrel,” said Mac. “But it looks like prices have already started to level off because Saudi Arabia has come out to say, 'Look we're doing everything we can to get our facilities back up and running.' Because of that reassurance, the market has already calmed down."

Mac said despite the jump, gas prices in Michigan are still 17 cents a gallon cheaper than where we were last year.



 
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