Saudi Pipeline Shutdown Lifts OMC Crude Costs By 35 To 40%

India's oil marketing companies (OMCs) are facing a sharp rise in crude procurement costs following the closure of a key Saudi pipeline, even though global benchmark Brent crude remains in the $105–109 per barrel range. Industry sources said refiners are now paying $120–130 per barrel for replacement cargoes as Gulf and West African grades command premiums of $8–10 per barrel over Brent, while Russian crude is also trading at a premium of $8–9 per barrel. Rising tanker freight rates, higher insurance costs and longer shipping routes are further adding to refiners' cost burden, though no immediate disruption to crude supplies is expected.