Saudi Arabia’s oil facility attack can hit India’s consumption, worsen fiscal balance
On Saturday, the Houthis, a rebel Shia group of Yemen that is backed by Iran, bombed the Abqaiq plant as well as the Khurais oil field in Saudi Arabia. The attack, executed by drones, meant that Saudi Aramco, the state-owned oil company, had to not only suspend the production of almost 6 million barrels per day (about 6 per cent of global oil supply) but also restrict the use of 2 mbd of spare capacity. This is the largest-ever disruption in crude oil production in Saudi Arabia, which supplies 10 per cent of global world supply and is the world’s largest crude oil exporter.
