Attacks on Saudi Oil Facilities

By Sachin Kaushik 18-Sep-2019

Saturday attack on Saudi Arabia’s oil production infrastructure jolted international oil markets and significantly escalated tensions between Iran and the United States, with President Donald Trump threatening that the U.S. military is “locked and loaded” to strike back. 
It knocked out almost half of Saudi Arabia's oil capacity. Oil prices skyrocketed after the attack but sharply dropped today.
But much about the attack remains unclear, including who carried it out and from where the projectiles or drones that have succeeded in taking half of Saudi Arabia’s daily oil production offline were launched. U.S. officials have blamed Iran, which has denied responsibility. 
How was the attack carried out? 
It’s still unclear exactly how the attack was carried out, but signs point to either a missile strike, drone attack, or some combination of the two. The attacks devastated Saudi oil fields and the oil-processing plants at Abqaiq.
Effect On India
A spike in global crude oil prices seems inevitable as Saudi Arabia will be forced to cap oil supplies in the wake of the attack on one of its largest oil refineries.
Since India is a large importer of oil from Saudi Arabia, a spike in the rates is the last thing New Delhi would want, especially at a time when India is facing an ongoing economic slowdown.
Let's look at some key numbers.
India imports almost 80 percent of its oil requirements. Saudi Arabia is India's second-largest oil supplier of crude and cooking gas.