Aramco Stops Crude Deliveries to India Amid Pipeline Crisis
What Happened
Saudi Aramco has reportedly informed Indian refiners that it will not supply crude oil until further notice following attacks on Saudi Arabia’s key East-West pipeline, which had become the kingdom’s main alternative export route after disruptions in the Strait of Hormuz. Aramco, which accounted for about 9% of India’s crude imports since the conflict began, has reportedly halted contracted supplies through both the Red Sea and Hormuz routes.
Key Takeaways
Indian refiners are expected to find replacement supplies, but at a higher cost. Brent crude has surged to around $108 per barrel, freight rates have risen, and discounts on Russian crude have narrowed, making alternative barrels more expensive. The bigger challenge for refiners is not availability, but the rising cost of sourcing and transporting crude.