Get Ready for Higher NJ Gas Prices … But Not Just Gas
Those attacks on Saudi Arabian oil production last weekend will likely have a negative impact on pump prices in New Jersey.
Tom Kloza, global head of energy analysis for the Oil Price Information Service, says we could see a gasoline price jump in New Jersey of between 10 and 25 cents per gallon.
"The good news is that we're starting off of very low prices," Kloza said.
In an interview Sunday with Fox News, White House special counselor KellyAnne Conway said the U.S. will contribute some of its own reserve if necessary to assure there's no oil shortage.
But there is more bad news. That loss of Saudi oil production, about 5% of the world's total, will affect other petroleum products, according to Kloza.
"It's not just gasoline. If you buy home heating oil, if you buy jet fuel, you're going to see it manifest itself very very quickly," Kloza said. "It's kind of one of maybe the three most unprecedented events impacting oil in the last 40 years."
He says our low gas prices which will soften the impact of the increases. New Jersey's average pump price Monday was $2.55 per gallon, according to AAA.
"Most of the crude oil that's processed in the United States does not come from Saudi Arabia," Kloza said. "And certainly most of the gasoline that's sold in New Jersey does not come from Saudi Arabia. But you know, this is like water all seeking the same level. If you get an increase in the price of the benchmark crude, which is North Sea Brent (crude) of $7 a barrel, the likelihood is that the price goes up seven dollars a barrel in Texas. It goes up $7 a barrel in Angola, $7 a barrel in Russia and so forth. So the price increases are relevant to really every nook and cranny of the world."
Joe Cutter is the afternoon news anchor on New Jersey 101.5.