Saudi oil flows to India and China likely to dip next month: Report
India Today
For April, exports to India are estimated at around 23 million barrels. This is slightly lower compared to recent months, when shipments ranged between 25 million and 28 million barrels, according to data from Kpler Ltd and Vortexa Ltd.
Saudi Arabia’s oil shipments to its biggest Asian buyers, China and India, are likely to fall next month, as the ongoing war in West Asia continues to disrupt supplies, reported Bloomberg.
Saudi Aramco, the world’s largest oil exporter, is expected to send around 40 million barrels of crude to China in April. This is lower than usual levels. In February, shipments were about 48 million barrels.
Oil flows to India are also expected to decline. For April, exports to India are estimated at around 23 million barrels. This is slightly lower compared to recent months, when shipments ranged between 25 million and 28 million barrels, according to data from Kpler Ltd and Vortexa Ltd.
The fall in supply is linked to the ongoing conflict involving the US, Israel and Iran, which is now close to completing one month. The situation has disrupted the Strait of Hormuz, a key route for global oil shipments.
This waterway connects the Persian Gulf to major markets, including Asia. Due to the conflict, the route has seen near-total closure, affecting the smooth movement of crude oil.
Iran has launched attacks on energy infrastructure in the region, which has further added to supply risks. As a result, global oil prices have moved higher, increasing costs for importing countries.
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