NEW DELHI: Saturday’s drone attack on Saudi Arabia’s largest crude oil processing facility may see petrol and diesel prices shoot up to Rs 4 per litre over the next fortnight. However, the overall impact on Indian interests is likely to be muted unless the disruption lasts for longer than three months. Kotak Institutional Securities analysts say Indian oil refiners may have to increase retail fuel prices Rs 5-6 per litre over the next fortnight if crude oil price rises by $10 a barrel.
While crude prices have moderated after opening a whopping 20 per cent higher on Monday, Brent crude is still trading 10 per cent higher ($66.25 per barrel) than pre-attack levels. However, an extended delay in restoring the 5.7 million barrels a day shortfall could see crude prices shoot up to $75-80 per barrel, warns Goldman Sachs and S&P Global Platts, especially since tensions in the region could escalate.
