Pakistan-Saudi pact won't shake India's crude supply: Report

India, which has a long-standing conflict with neighbouring Pakistan, is among the world's largest oil consumers and a key buyer of Saudi crude

Saudi Arabia's recently announced mutual defence pact with Pakistan is not expected to disrupt Riyadh's energy exports to India, a CNBC report said on Tuesday.

When asked whether India would continue purchasing Saudi crude, a senior source familiar with the situation said, "Of course." Speaking anonymously due to the sensitivity of the issue, the source noted that Saudi Arabia is expanding its security partnerships but remains committed to maintaining its commercial relationships.

India, which has a long-standing conflict with neighbouring Pakistan, is among the world's largest oil consumers and a key buyer of Saudi crude.

In July, Saudi Arabia exported just over 600,000 barrels per day to India, making it one of the country's top three suppliers along with Russia and Iraq, according to Kpler data.

The source cited by CNBC also dismissed speculation that Saudi Arabia might move away from the US dollar for oil transactions, describing reports of a non-dollar pricing arrangement as a "phantom agreement."

Dollar-denominated pricing continues to underpin Saudi crude exports, even as Riyadh balances its security partnerships with both the US and Pakistan while expanding energy trade with India, a fellow BRICS member.

"Saudi Arabia has always been a very strong partner for us," Asif Iqbal, president of the Indian Economic Trade Association, told CNBC on Friday regarding the Saudi-Pakistan defense pact. He emphasised that the deal reflects the national priorities of the countries involved. "Those countries have their own interests, just like India has its own interests."

India's Ministry of External Affairs stated that it is "aware that this development, which formalises a long-standing arrangement between the two countries, had been under consideration." The ministry added that it will assess the implications of the pact for national security as well as regional and global stability.

The defence agreement, signed in Riyadh by Saudi Crown Prince Mohammed bin Salman and Pakistani Prime Minister Shehbaz Sharif, signals closer ties between the two nations. It comes amid growing unease among Gulf states regarding US defence guarantees, particularly following Israel's recent strike in Qatar.

"They're pivoting to other partners because there is this perception that the US will not honour its promises as it used to do," Rashmi Garg, senior portfolio manager at Al Dhabi Capital, told CNBC's "Access Middle East."

She added that, so far, relations between the UAE, other GCC countries, and the U.S. remain stable, including trade tariffs, though the situation warrants ongoing attention.

Meanwhile, India is also strengthening its Gulf relationships. Commerce Minister Piyush Goyal recently visited the UAE to review the progress of the UAE-India Comprehensive Economic Partnership Agreement. Abu Dhabi is a significant crude supplier to India, delivering around 400,000 barrels per day in June, according to Kpler.

"We're quite skeptical that there will be any long-lasting impact, at least over the next 6-12 months," Manpreet Gill, chief investment officer for Africa, the Middle East, and Europe at Standard Chartered Wealth Management, told CNBC regarding potential price effects. He noted that geopolitical events tend to cause only temporary oil price fluctuations and suggested that WTI futures are likely to remain near $65 per barrel.