A dozen of unmanned drones from unknown origin attacked two sites of Saudi Arabia’s largest oil producing company Aramco
A couple of days ago, a major oil site in Saudi Arabia was attacked by drones. Owned by Aramco, one of the world’s largest oil producers, the attack has led to speculations of fuel shortage globally, that may result in a fuel hike. Attack on Aramco site that supplies fuel to Indian Oil has led to reports that the petrol, diesel prices may jump Rs 5-6 per litre in the coming days.
The attacks on two sites at the heart of Saudi Arabia’s oil industry had shut down more than 5% of global supply, and the oil prices increased as much as 20% higher. The attacks knocked out about 5.7 million barrels per day (bpd) of Saudi output from targeted sites in Abqaiq and Khurais, in eastern Saudi Arabia.
While oil prices soared as much as 20% starting this week, it’s the highest jump since Gulf War in 1991. Analysts has said that the benchmark Brent now trading at around $66 a barrel, could hit $100 if the supply is restored.
Saudi Arabia is the largest global exporter of the fuel and usually ships more than 7 million bpd of oil to global destinations including India. Saudi Aramco’s full return to normal oil output volumes “may take months”, sources said.
As for India, various business news websites have claimed that petrol and diesel prices may jump by Rs 5-6 per litre in India by quoting Kotak Institutional Equities’. The price of petrol and diesel at retail outlets is based on an average of last 15 days of benchmark price of petrol and diesel in the Middle East.
Hindustan Petroleum Corp Ltd has also said that the price of petrol and diesel at retail outlets might go up if the price of crude stays at current levels. “Price of product at fuel outlets might be impacted if crude price continues to go up by 10%,” M K Surana, chairman of HPCL told Reuters.