BPCL to keep off buying extra crude despite low prices due to virus outbreak
In a bid to manage inventory better and check potential losses, state-owned Bharat Petroleum Corporation Ltd (BPCL) will not buy extra crude to take advantage of the drop in prices due to the coronovirus outbreak, a top executive has said.
From about $70 a barrel about two months ago, global crude prices have dropped to about $55 a barrel, helping BPCL save money on its crude purchases.
On top of it, there is an extra price reduction of $3-5 per barrel on opportunity crude — distress crude looking for buyers after being rejected by China. This will be available in significant quantities over the next three or four months.
