Indian oil firms could gain from Coronavirus outbreak
Owing to the suspension of fuel contracts by China in the face of the Coronavirus outbreak, Indian firms are on a hunt for bargains on diverted cargoes of crude oil and liquefied natural gas (LNG). This has also caused the shipping rates to fall. The ongoing trade tensions and global economic situation have further complicated the situation. “30 to 60 million barrels of oil already purchased and on its way to China will need to be either resold and/or kept in storage for future use,” as per S&P Global Platts. This gives a window of opportunity to Indian buyers to avail distress deals available on sea bound crude and LNG, meant for consumption in China.