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After the simultaneous drone attacks on the Abqaiq and Khurais facilities of the world's largest oil producer, Aramco, Saudi Arabia has suspended production of 5.7 million barrels of crude oil per day, near the half of his daily production. Its previous capacity could be restored by the end of September, according to a statement issued by the Minister of Energy.
After Iraq, Saudi Arabia is India's second largest source of oil, accounting for about 20 percent of total oil imports last year. With this disruption, India has something to worry about, given its dependence on foreign markets to meet its domestic energy needs, where about 80% of its oil consumption is covered by imports. In addition, persistent supply disruptions could lead to higher prices of petroleum products in the domestic market, which could slow down the already-weakening Indian economy.
With such dependence, India can not afford any disruption of another major country's oil supply, as it has already stopped imports of Iranian oil and reduced those of Venezuela following the sanctions imposed by the states. -United. Iran was India's third largest oil supplier, accounting for 14% of its total imports in 2018. Although Saudi Arabia has increased its supply, Angola and the United States have Mexico has proved to be other important suppliers to fill the gap caused by its self-imposed embargo. With regard to Iranian and Venezuelan oil, India still faces the challenge of securing oil supplies.
The sluggish Indian economy is already showing signs of recession, with annualized growth falling to 5%, its lowest level in six years, and could still be shaken by a steep spiral of oil prices. The BSE (Bombay Stock Exchange) Sensex fell and the value of the rupee still depreciated after the Aramco attack on 14 September. The governor of the Reserve Bank of India, Shaktikanta Das, is worried during a televised interview that "this would have an impact on the current account deficit and perhaps more on the budget deficit. it lasts longer. "
In the aftermath of the Aramco attack, India is more worried about the likelihood of a full-fledged war in the Middle East, since the United States and Saudi Arabia Saudi Arabia have designated Iran as a major conspirator behind or directly behind this attack and want revenge. . Iran denied any role in the attack. Such hostility in the region could have a negative impact on oil supply and have a significant impact on countries dependent on the oil trade to meet their domestic needs, such as India. The Middle East, a region that has supplied 70% of the $ 92 billion worth of oil imported by India in 2018, is divided between the various blocs led by Saudi Arabia and Iran. It would be difficult for India to maintain a diplomatic equilibrium with all countries. these countries at war.
India produces very little of its own oil and is therefore the world's third largest importer after China and the United States, a market that can not be sustained without adequate external supply. India's dependence on oil results in a global comparison of production and consumption: it produced 0.9% of world oil while consuming about 5.2% in 2018. To reduce this dependence, India is considering an increase in oil production capacity in the country. while developing unconventional alternative energy sources such as solar energy and maximizing the use of electric vehicles. Meanwhile, to face the uncertainties of a restive Middle East, India is also seeking other sources of oil, its Petroleum Minister, Dharmendra Pradhan, has visited Russia. to discuss the increase of its oil exports to India.
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