Security concerns around Saudi Arabia’s oil fields have pushed the price of Brent crude to above the $70 per barrel mark, the first time since the pandemic broke. We take a look at how this happened and how it impacts India.
Why are crude oil prices spiking?
Saudi Arabia, one of the largest producers of crude oil, on Sunday announced that Ras Tanura, the world’s largest crude oil exporting facility, was attacked by a drone from the sea with a missile landing close to a residential complex near the storage facility. While the attack by Houthi rebels did not impact oil supplies with Saudi Arabia reporting no property damage from the attack, the price of Brent crude which has already been on an upswing since October, rose further to $70.7 per barrel on the back of concerns about the security of the country’s crude oil supplies.
How does this impact India?
If prices persist at over $70 per barrel, Indian consumers who are already facing record prices for auto fuels will likely have to face another round of hikes in the price of petrol and diesel.