On September 14, drones attacked the world's largest crude-processing facility operated by Saudi Arabia's Aramco.
The drone attack claimed by Yemen's Houthi rebels, cut the kingdom's output in half and sent prices soaring by the most in decades.
Here is a look at the world's largest producers and consumers of oil
The drone attack claimed by Yemen's Houthi rebels, cut the kingdom's output in half and sent prices soaring by the most in decades.
Here is a look at the world's largest producers and consumers of oil
Largest Producers
(Source : U.S. Energy Information Administration)
Largest Consumers
(Source : indexmundi.com)
The impact on prices of crude though immediate (prices have since corrected downwards) was maybe because of panic - but one thing is clear - the risk has increased.
When the risk increases risk premium ( cost of insurance ) increases.
Unless concrete steps are taken to bring down the risk of an attack on oil facilities - the possibility of sudden spike in oil prices will remain.
And India being a net importer of oil - every time there is a spike in oil prices our stock markets will get impacted.
The good news though is that oil consumption in the world is not increasing - so the prices because of an attack - may not increase for good.
(Disclaimer : For information purposes only)
