India bracing for oil spike impact, in touch with Saudi Aramco

New Delhi: With crude oil prices surging around 20% on Monday following the drone strikes on the world’s biggest oil producer, Saudi Arabian Oil Co., or Saudi Aramco; India——the world’s third largest oil importer is bracing itself to stem any impact on its consumers.

While the reported strikes by 10 drones at Abqaiq and Khurais oil facilities, disrupted more than half of Saudi Arabia’s oil capacity or 5.7 million barrels per day (mbpd), the enormity of the situation can be gauged from the fact that it is being termed as the far worst shock to global supplies than when Saddam Hussein invaded Kuwait in 1990 and 1979 Islamic Revolution in Iran.

“Yesterday, Saudi Aramco officials informed the Indian refiners that there would be no shortage of supplies to them. MoPNG (Ministry of Petroleum and Natural gas) is closely monitoring the situation in consultation with Indian refiners and Saudi Aramco,” said an Indian oil ministry spokesperson on Monday.