NEW DELHI : India is staring at a WTI moment with refiners flooding the market with petroleum products that has not enough takers in the absence of demand in the present lockdown and storage facilities reaching their capacity.
Officials in state run oil marketing companies said that with demand for petroleum products, primarily petrol and diesel, shrinking by almost 60 per cent in the first half of April on COVID-19 related lockdown and projections that overall product demand will be over 30 per cent lower in the first quarter of FY21, they were left with no option to cut production with refinery run almost dipping by 50 per cent now.
To add to the problem is almost full storage capacity at fuel stations and at sites created by refiners. Analysts estimate that almost entire 85 million barrel storage capacity with the state-run companies is full.
