Impact of drone attacks
Drone attacks last week on Saudi Arabia’s crude processing facility, the largest in the world, have impacted half of the country’s crude oil production and about 5% of the world supply. Following the attacks, Global Brent crude futures shot up more than 20% to $66.91 per barrel.
However, allaying Indian fears, Saudi Aramco officials have told oil companies that the attacks would not result in a shortage of supplies. However, oil prices are expected to rise.
Position of Saudi Arabia as oil supplier
Saudi Arabia is a major source of oil imports for India, accounting for nearly 18% of the 226 million tonnes of crude the country imported during 2018-19. India imports more than 80% of its crude oil requirement.
Who is responsible for attacks?
Tensions in the Middle East have escalated following drone attacks on two major oil facilities in Saudi Arabia.
Yemen’s Houthi rebels have claimed responsibility for the attacks. However, US Secretary of State Mike Pompeo swiftly accused Iran for the attacks. The allegations were rejected by Tehran which said the allegations were meant to justify actions against it.
Source: The Hindu