MUMBAI: It's double whammy for oil refiners amid the covid-19 pandemic as they stare at an inventory loss of over ₹25,000 crore in the March quarter due to a slump in crude oil prices, and a likely fall in gross refining margins in the June quarter, said Crisil Ratings in a note.
Crude prices nosedived from an average $55 per barrel in February to $33 in March and closed at around $20 per barrel at the end of March as demand slumped because of the pandemic.
On April 12, the Organization of the Petroleum Exporting Countries managed to strike a deal for a record production cut of 9.7 million barrel per day.
Yet crude prices have tanked because the pandemic dragged down demand across the globe. “Inventory losses would be more for refineries
Read more on livemint.com