What does the Saudi oil attack mean for Alberta?

CALGARY (660 NEWS) – A bombing attack on a Saudi Arabia oil reserve over the weekend has some fearing what it could mean for global oil and gas prices.

Five per cent of the daily global oil supply was taken out of commission following the attack.

Saudi Arabia lost half of its oil production output abruptly, which amounts to around five million barrels a day.

Oil prices already spiked on Monday morning with West Texas Intermediate (WTI) jumping more than 15 per cent and Brent crude leaping nearly 20 per cent while the price of Western Canadian Select (WCS) remained steady.

READ MORE: Oil prices jump as attack on Saudi plant threatens supply

The higher oil prices could mean a boost to Alberta’s economy.

“At the end of the day, this Alberta economy is a one-trick-pony,” said industry analyst David Yager. “We benefit more from higher oil prices than the cost at the pump or the input costs of petroleum and related products as an oil producer.”

Yager anticipates the prices will stay high until Saudi Arabia repairs and replenishes its oil reserves.

Meantime, if you’re worried at the sticker price at the pump, you shouldn’t be, according to analyst Dan McTeague.

“I’m not thinking there’s going to be a big impact just yet. There will be a little bit on the oil side, maybe four or five dollars a barrel. The offset of the introduction of winter gasoline this week will probably outweigh the increase the oil brings to consumers at the pump. We may not see much of an effect.”

As of Monday morning, the average price for gasoline in Calgary was around 98 cents a litre.