In India, they talked about the possible reason for the even greater drop in oil prices

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In India, they talked about the possible reason for the even greater drop in oil prices

In India, authorities were criticized for the fact that the country cannot take full advantage of the unique situation associated with extremely low oil prices. Representatives of opposition circles, as well as the oil refining industry, say that at a time when oil is actually traded at bargain prices, India has the opportunity to acquire substantial oil reserves and fill up storage facilities. But what is the problem?

And the problem, allegedly, is that the volume of such storage facilities in the representatives of the oil refining industry is small.
In the Indian media:

There is a shortage of oil storage facilities.

It is noted that in conditions when it would be possible to create an impressive reserve of hydrocarbons, refineries are forced to reduce production by up to 50 percent. The reason is the low demand for fuel, the fullness of existing storage facilities.

By the end of the week, about 19 million barrels of oil will be transferred to India in the still free parts of storage facilities. One of the country's largest storage facilities is located in Padura.

Indian crude oil imports averaged around 4,5 million barrels per day in 2019. India planned to increase import of "black gold".

Separately, it is said that if the situation does not change, then all Indian stores will be crowded by the end of May. A paradoxical situation will arise on the market - one of the major oil consumers (India) wants to purchase oil (due to extremely low prices), but cannot afford it due to the lack of free storage capacity. And it will either have to run the refinery at full capacity, which is economically unprofitable due to a significant drop in demand (the fuel that has already been produced will have to be sent to storage facilities, as it will not be bought up), or it will temporarily refuse further oil imports. Any of these cases could cause an even greater drop in oil prices.

In this regard, the Government of India is criticized for the fact that at one time it did not subsidize the creation of a larger number of hydrocarbon storage facilities. The management of the oil refinery complains: “We cannot take full advantage of the collapse in oil prices, just as we cannot take advantage if the drop in oil prices is even more significant.”

Only the increase in demand for fuel can save the situation. And this is directly related to the growth of economic activity not only in India, but throughout the world. But then the oil price will jump, which will not be profitable for India.
  • Indian company IndiaOil
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33 comments
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  1. +3
    April 23 2020
    The stick still has 2 ends.
    1. +8
      April 23 2020
      Quote: Teberii
      The stick still has 2 ends.

      And the rope, how many do not curl, and the end will be ...

      Peaks, falls, it has always been and will be, as it will once be and the stabilization of the oil market ...

      It's life Yes
      1. +4
        April 23 2020
        Well, it stabilizes at 20 .. without peaks of take-off to 100 ..
        Hello 90s ..
        1. +12
          April 23 2020
          Quote: Roman123567
          Well, it stabilizes at 20 .. without peaks of take-off to 100 ..

          And what, this is an occasion to lay down in a coffin? Maybe you just have to accept the prevailing conditions and learn to live in them?
          Moreover, Russia, for which such a fall in export prices, is not an extra incentive to engage in other sectors of the economy ...
          1. 0
            April 23 2020
            And what, this is an occasion to lay down in a coffin?
            Do not..

            Maybe you just have to accept the prevailing conditions and learn to live in them?
            But try this !!
            1. +11
              April 23 2020
              Quote: Roman123567
              Do not..


              I don't want to laughing

        2. +1
          April 23 2020
          Cheaper, only FREE!
    2. +4
      April 23 2020
      This should have been remembered when there was 120 oil each ..
      1. avg
        +1
        April 23 2020
        Then the opposition would be worried that at such wild prices, people spend money on storages for fatty oil workers. So, a true leader, in addition to sagacity, needs courage and willingness to take responsibility.
  2. +5
    April 23 2020
    China will take advantage of the situation
    in full. Low energy prices for the Chinese -
    it's good. They have oil storage facilities, not that of India. And then
    that the demand for goods is low, then
    it is temporary. Anyway others
    countries will buy where
    to go. No one else
    produces ...
  3. +3
    April 23 2020
    The paradox on the paradox and the paradox drives!
    Although it is claimed that some were actually preparing for such a crisis, the CROWN VIRUS has seriously confused many plans!
    So guess now, and who benefits from it, so what for sure ???
    Not a Spanish woman, of course, but he will leave a memory of himself for a long time! If he leaves us alone, in general ???
    1. -4
      April 23 2020
      If there were no noise on TV, no one would remember ..
      Mortality is like from an ordinary influenza .. People get sick every spring, nothing extraordinary from the word at all ..
      1. +3
        April 23 2020
        Quote: Roman123567
        If there were no noise on TV, no one would remember ..
        Mortality is like from an ordinary influenza .. People get sick every spring, nothing extraordinary from the word at all ..

        Mortality from influenza is 1,5-2%, mortality from the crown in Italy is more than 10%, global mortality is more than 6%. And this is subject to almost global quarantine. Mortality is now calculated on the basis of the number of sick and dead, and if you count on the basis of the number of people who have recovered and died, then in England, for example, 600 people who have recovered are several thousand dead and it is not the only one. For all my life I personally did not know a single person who died of the flu, but in 3 months I already know the dead, among the relatives of my friends, from the crown
      2. 0
        April 23 2020
        The media is certainly an event to greatly exalt, but people are always afraid of the unknown! Moreover, psychosis, like a virus, seized the information space quickly.
        1. 0
          April 23 2020
          One gets the impression that on this psychosis one of the powerful has managed to make good money, which is why it warms up.
          1. 0
            April 23 2020
            The question is simple, familiar, we can say - Who benefits?
            And the answers are already for every taste.
            And the truth, as always, is hiding in the fog, or around the corner.
      3. 0
        April 23 2020
        Quote: Roman123567
        Mortality is like from an ordinary influenza .. People get sick every spring, nothing extraordinary from the word at all ..

        First, flu can be treated and vaccinated against it, although it is useless - psychological relief, and the flu is not as contagious as the crown ...
  4. +5
    April 23 2020
    If the vaults and even the barrels, that is, three-liter cans, have run out! Do not give thanks for the advice, dear Indians.
  5. +1
    April 23 2020
    This "joke" WHO funded by Bill Gates about the pandemic got such a ricochet! It looks like they really undermined the madness of "paper oil" and the domination of the petrodollar ... And REAL values ​​came to the surface - goods and commodity producers, live oil and other energy sources ... We need to think about this and develop IT, and not brag about the number of zeros in virtual accounts ... Who prevented them, managers, from building oil storage facilities? Little space? Or was it a pity for the money? Again, the state was looking in the wrong direction? So the free market isn't? wassat
  6. +3
    April 23 2020
    the refinery will have to run at full capacity, which is economically unprofitable due to a significant drop in demand (already produced fuel will have to be sent to storage facilities, since they will not be sold out)

    That is, does Krishna not allow lower prices and spur demand?
    1. +10
      April 23 2020
      Quote: pmkemcity
      That is, does Krishna not allow lower prices and spur demand?

      In the case of gasoline, lower prices are not particularly spurring demand.
      People in general, as before, traveled and must ride. The price of gasoline did not bother much, but now the drop in demand is not due to prices.
      Aircraft do not fly (and will not at least give them this gasoline for free), the same thing with a huge piece of industry.
      Closed, business activity at zero, even with free gas, at least with paid - there is no difference.
      The price spurring demand is minimal and certainly will not bring to the indicators of previous consumption.
      1. +1
        April 23 2020
        Quote: atalef
        The price spurring demand is minimal and certainly will not bring to the indicators of previous consumption.

        I would be strongly "spurred".
    2. +6
      April 23 2020
      Then the police with sticks is not enough. The task of the authorities so that people do not hang out on the streets in their motor rickshaws.

      Well and most importantly, the main consumer is industry and large vehicles. They are in quarantine. Even if an auto rickshaw can drive a dollar 24/7 for a whole week, this will not change the situation.
      1. -1
        April 23 2020
        Then the police with sticks is not enough. The task of the authorities so that people do not hang out on the streets


        I imagined the task of the authorities and the police a little differently ..
        1. +5
          April 23 2020
          Well, they have quarantine. Without any of these electronic passes. If the policeman sees, he steps away with a stick. Vidosiki on Twitter and YouTube are regularly updated.
        2. 0
          April 23 2020
          In Germany, Thank God everything works and there is no quarantine (that's why I work), I think the Germans are so careless or do they know something and are silent?
  7. +2
    April 23 2020
    It’s too early for the Indians to think about the upcoming increase in demand. They are only at the very beginning of the pandemic. I believe that in a month or two they will overtake everyone.
  8. 0
    April 23 2020

    And the problem, allegedly, is that the volume of such storage facilities in the representatives of the oil refining industry is small.
    You will not stock up for life. And about additional oil storages, the Indians needed to think earlier.
  9. -3
    April 23 2020
    Gypsies can’t understand the whole essence and depth of Putin’s multi-ways.

    Not everyone today can watch tomorrow!
    Life is not a field to survive.
    The farther into the forest, the seven times measure.
    Without labor and one in the field is not a warrior.
    Here you are not here ...
  10. +2
    April 23 2020
    Any of these cases could cause an even greater drop in oil prices.

    This is some kind of Russophobia ..))
  11. +1
    April 23 2020
    one of the major oil consumers (India) wants to purchase oil (due to extremely low prices), but cannot afford it due to the lack of free storage capacity.

    Well, let’s drink so that our desires coincide with our needs! drinks
  12. +1
    April 23 2020
    There is a shortage of oil storage facilities.

    Where did these capacities come from when the Doges were already loaded, the tankers are loaded, they are used as storage. Importers of oil have already filled all the pots and buckets with it, first you need to put this somewhere.
  13. 0
    April 23 2020
    "So let's drink to make our desires coincide with our capabilities!"

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