Saudi Aramco Refinery Attack: Will India’s oil supply dry out?


Saudi Aramco Refinery Attack: Will India’s oil supply dry out?

Drone Attack on Saudi Oil Refinery: It’s a nightmare coming true for oil-hungry countries like India and China that are heavily dependent on imported oil to meet their energy needs. Drone attack on Aramco refinery in Saudi Arabia has shaken the world oil market.

It has a direct impact as the crude oil prices have gone up by nearly 15% within two days of the attack. The price surge is more in case of Brent North Crude, an oil basked that accounts for bulk of India’s imports unlike West Texas Instrument (WTI) that is relevant for the US market. It is not yet clear whether Saudi Arabia will be able to restore the supply to pre-attack level within 10-15 days or it will take more time.

If the disruption continues for more than 10-15 days then it will have an impact on the retail price of petrol, diesel and if it drags on for months then it will mark the end of the era of moderate crude prices, two top former petroleum sector officials said. Read More

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