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Saudi defense pact with Pakistan unlikely to disrupt oil flows to India, source says

1. Saudi Arabia maintains strong energy ties with India, despite new defense pact with Pakistan. 2. India remains a key oil consumer, purchasing over 600,000 barrels daily from Saudi Arabia. 3. Speculation about abandoning dollar oil pricing is dismissed; Saudi exports still dollar-denominated. 4. Investors skeptical about long-term impact of geopolitical tensions on oil prices. 5. WTI futures expected to stabilize around $65 per barrel in the coming months.

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FAQ

Why Neutral?

The geopolitical developments do not alter existing oil supply chains directly. Historical events suggest temporary market reactions rather than sustained price changes.

How important is it?

The article discusses developments affecting crude supply dynamics, relevant to BNO's price movements. Market perceptions of geopolitical stability in oil-producing regions can influence investor sentiments.

Why Short Term?

Current geopolitical dynamics may influence prices, but stability is predicted within 6-12 months. Temporary news may not lead to fundamental shifts in oil pricing mechanisms.

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