More bad news for India as Crude Oil prices cross $ 70 after attack on Saudi Oil Terminal

Bhubaneswar: Brent Crude oil prices surged past USD 70 per barrel on Monday after Saudi Arabia said Yemen’s Houthi rebels fired armed drones at a Saudi Aramco facility at Ras Tanura port.

The Houthis also confirmed that they have attacked Saudi cities of Damam, Yasir and Jazan. The Saudi Defence Ministry, while condemning the attack, has said that it was cowardly terrorist attempt to target Global Energy supplies and security.

The attack, which came at a time when the Crude oil price are already climbing following OPEC+ nations’ decision to extend the production cut beyond March, could push the prices further.

While, Brent Crude oil prices for the April contract, jumped 2.12 per cent to USD 70.83, the West Texas Intermediate (WTI) crude surged by 2.4 per cent to USD 67.59 per barrel.

Fresh rise in Crude oil prices will further add to Government of India’s headaches as it is looking to ease domestic Petrol, Diesel prices during this election season.

India’s domestic Petrol and Diesel prices have remained unchanged for the 6th consecutive day on Monday. In Delhi, Petrol is being sold at Rs.91.17 and diesel at Rs.81.47 per litre, while in Mumbai Petrol is being sold at Rs.97.57 and Rs.88.60 per litre.

An attack on World Energy Supplies : Saudi Arabia

The Saudi energy ministry while condemning the attack has said that such attacks do not only target the Kingdom, but the world energy supplies and therefore the global economy.

“Such acts of sabotage do not only target the Kingdom of Saudi Arabia, but also the security and stability of energy supplies to the world, and therefore, the global economy. They affect the security of petroleum exports, freedom of world trade, and maritime traffic. They also expose coasts and territorial waters to grave environmental catastrophes due to potential leakage of petroleum or petroleum product” the ministry said in a statement.