Oil firms float finished fuel products on Arabian Sea as demand slumps
US oil futures touched an unprecedented negative pricing on Monday over low demand and scarce storage.
Closer home, Indian refiners, too, are facing a similar issue with their refined products. This has forced some like Bharat Petroleum Corporation (BPCL) to float some products in the Arabian Sea. Officials said products have been stored in tanker vessels in the past. This time this was due to a large-scale slump in demand and onshore tankage space being optimally utilised. “We are floating products like motor spirit and reformates,” said a senior executive from BPCL.
The products are being used in chartered ships floating in the Arabian Sea. “They will either be exported or be brought back for internal consumption, depending on demand,” he added.
