The attack on Saudi Arabia’s oil facilities has led to many questions regarding the supply of crude oil. The incident has led to a shortage in supply. The crisis has also affected the production of oil in Saudi Arabia.
This has emerged as a big challenge in the global crude supply chain. The prices of crude oil have increased 19-20 percent to 71 US dollars per barrel. This is the highest price of crude oil in 3 decades.
The Saudi oil facilities were hit on Saturday morning in a drone attack claimed by the Houthi rebels. However the source fo the attack is still under dispute with many raising a finger at Iran too. India has strongly condemned the attack.
External Affairs Ministry has reiterated its stand of condeming terror in all formats.
The situation is a big challenge for India. For the fastest growing major economy, it is imperative for India to ensure its long-term energy security.
World’s largest oil producer Saudi Arabia is also India’s biggest source of oil. 20% of India’s imports are from Saudi Arabia.
Oil markets often become a casualty time and again..in the frictions that arise between nations.