Exclusive: Two Indian refiners declare force majeure to curb Mideast oil supply

By Nidhi Verma NEW DELHI (Reuters) - India's top refiners Indian Oil Corp and Mangalore Refinery and Petrochemicals Ltd have declared force majeure as local fuel demand is hit due to a nationwide lockdown to stem the spread of coronavirus, according to documents seen by Reuters. The two refiners are seeking to either delay or cancel purchases of crude in April from Middle East suppliers, sources said.

Reuters March 28, 2020 00:06:06 IST
Exclusive: Two Indian refiners declare force majeure to curb Mideast oil supply

Exclusive Two Indian refiners declare force majeure to curb Mideast oil supply

By Nidhi Verma

NEW DELHI (Reuters) - India's top refiners Indian Oil Corp and Mangalore Refinery and Petrochemicals Ltd have declared force majeure as local fuel demand is hit due to a nationwide lockdown to stem the spread of coronavirus, according to documents seen by Reuters.

The two refiners are seeking to either delay or cancel purchases of crude in April from Middle East suppliers, sources said.

The two refiners together control about 40% of India's 5 million barrels per day refining capacity.

Refiners across the globe are bracing for deeper output cuts, bruised by an unprecedented demand shock as more countries lock down and restrict travel to contain the spread of the coronavirus.

Global fuel demand is set to drop by as much as 15% to 20% in the second quarter as a result of the coronavirus pandemic, which has killed more than 22,000 people, shut most worldwide air travel and has numerous countries imposing lockdowns keeping people at home and out of their cars.

(Reporting by Nidhi Verma; Editing by Elaine Hardcastle)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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