News:Houthi rebels from Yemen has carried out drone attacks on two major Saudi Aramco oil facilities in Abqaiq and Hijrat Khurais in Saudi Arabia.
About the Abqaiq facility:
- Abqaiq is the world’s largest oil processing facility where about two-thirds of the total Saudi supply is refined and cleaned of impurities.
- The attacks have impacted Saudi Arabia’s oil production and exports, and in turn the global oil market.
- Since,Saudi Arabia is the world’s top oil exporter.It ships more than 7 million barrels of oil to global destinations every day.The output cut is expected to send oil prices up $3-$5 per barrel.
Impact on India:
- India is the world’s third largest oil importer.It imports over 80 percent of oil requirements.
- Saudi Arabia is a crucial source of energy for India and the second largest supplier of crude and cooking gas to India.
- Hence,the hike in oil prices will inflate the import bill and disrupt the country’s current account deficit.