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Crash in WTI crude was purely a trading move, says HPCL

Updated : April 21, 2020 01:02 PM IST

The price of a barrel of the benchmark US oil plunged over 300 percent on Monday to settle at -$37.63, a troubling sign of an unprecedented global energy surplus as the coronavirus pandemic affected economic activity.

However, it rebounded on Tuesday, with the US crude turning positive.

Sharing his views on the oil crash, MK Surana, CMD of Hindustan Petroleum Corporation, said, “Talking about yesterday’s event - that cannot be considered as a natural thing to happen because WTI going minus 35 and again recovering to plus one today morning... it was purely a trading activity, more a result of the WTI futures settlement today."

“As far as physical deliveries are concerned, it is a lower crude regime of $20 per barrel and that is good for these refiners provided it remains stable,” said Surana.
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