The strikes on key Saudi oil facilities will hit India’s oil import bill and the Indian Rupee will be the immediate casualty, Singapore’s DBS Banking Group said on Monday.
The coordinated strikes on Saturday, targeting Abqaiq, the site of the largest oil processing plant run by the Saudi state oil company, Aramco, and the Khurais oilfield led to the biggest surge in crude oil prices since the Gulf War.
Brent crude surged by 20 per cent ($12) on Monday, while the West Texas Intermediate (WTI) jumped 15 per cent (over $8). “Saudi Arabia is India’s second largest supplier of crude and cooking gas.
A 10 per cent rise in crude prices widens India’s current account deficit by 0.4-0.5 per cent of GDP,” DBS’ Chief Economist for G3 and Asia Taimur Baig said. Read More
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