Dow falls as oil prices jump after Saudi oil attack, raising specter of higher gas prices

(BY: PAUL DAVIDSON, USA TODAY) -- The Dow Jones industrial average fell more than 100 points in late morning trading on Monday after an attack on Saudi Arabian oil facilities disrupted more than 5% of the world’s daily crude supplies and raised the prospect of higher gasoline prices that could add a speed bump to an already vulnerable U.S. economy.

Gasoline prices are likely to rise about 15 cents a gallon as early as this week after drone strikes on two major Saudi oil facilities over the weekend caused the largest-ever disruption of the world’s daily oil supplies, analysts say.

That would drive average pump prices from $2.56 a gallon to $2.71.

As of 11:35 a.m. ET on Monday, the U.S. benchmark crude price rose $6.38, or 11.6%, to $61.23, in response to the attacks. And wholesale gasoline prices increased about 15 cents a gallon, says Tom Kloza, chief global analyst for the Oil Price Information Service.