Aramco stops crude supplies to India; replacement barrels costlier as oil tops $100
The pipeline was shut late last week after it was allegedly targeted by drones. It had become Saudi Arabia’s main alternative route for transporting crude after the maritime chokepoint, the Strait of Hormuz, was disrupted.
Saudi Aramco has announced the suspension of crude supplies to Indian refiners due to attacks on the East-West pipeline, which is now closed. This disruption has forced Indian refiners to seek alternative sources for their crude needs. While they are confident they can find other suppliers, the cost implications are significant, with oil prices rising sharply and freight expenses increasing.
The pipeline had become Saudi Arabia's main alternative route for transporting crude after the disruption at the Strait of Hormuz. Despite this, Saudi Arabia has continued to sell spot cargoes to traders, who are expected to deliver limited quantities to Indian refiners. The situation has raised concerns about the potential escalation of the conflict between Saudi Arabia and the Iran-aligned Houthis, which could further disrupt energy supplies.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
