Union Petroleum Minister Dharmendra Pradhan on Monday, September 16, assured that the oil supplies will not be disrupted after an attack on Saudi Arabian oil plants that took place Saturday. Speaking to a news agency ANI, Union Minister Dharmendra Pradhan said that they had reviewed their overall crude oil supplies for the month of September with their oil marketing companies. There would be no supply disruption to India. Also, they are closely monitoring the evolving situation.
According to an oil ministry statement, after the attacks on the oil stabilisation centres of Saudi Aramco, top executives of Aramco were contacted. Indian ambassador in Riyadh had contacted the senior management of Aramco in order to maintain the steady supply to India.
The world’s largest crude-processing facility operated in Saudi Arabia’s Aramco was hit by a massive drone strike on Saturday, showing an upward trend in the oil prices to their highest in the nearly four months. It also halved the kingdom’s production.
Today, the world’s biggest oil exporter is Saudi Arabia. The attack on state-owned producer Saudi Aramco’s crude-processing facilities at Abqaiq and Khurais has cut the output by 5.7 million barrels per day or over 5 per cent of the world’s supply. However, the company has not given a timeline for the resumption of the full output.
While the targets and extent of damage initially were not clear, the attack seemingly has reduced half of the country’s production. Also, led to a cut of 5.7 million barrels per day.
India imports nearly 83 per cent of its oil. It needs as Saudi remains the second-biggest supplier after Iraq. India has bought 40.33 million tonnes of crude oil from Saudi Arabia in 2018-19, fiscal from a total of 207.3 million tonnes of oil. It was imported in that year.
Hindustan Petroleum Corporation Limited, A state-run oil company, predicts the price of petrol and diesel at retail outlets probably go up if the price of crude remains at the present levels.
An attack took place in the heartland of Saudi Arabia’s oil industry includes the world’s biggest petroleum-processing facility at Abqaiq. The attack was possibly came from Iran, and cruise missiles. It might have been used, US official quoted.