Coronavirus company news summary – Bleak prospects for oil refiners in Europe – Oil and gas sector receives aid from CARES Fund

26 October 2020 (Last Updated October 26th, 2020 09:42)

26 October

The resurgence of Covid-19 cases across European countries has led to reduction in transport fuel prices impacting oil refining companies, which are already facing losses due to the pandemic. Gasoline margins declined from $8.36/bl two weeks ago to $2.94/bl as demand for fell by almost 90%.

The Covid-19 induced lockdown and the resultant decrease in demand adversely affected India’s oil and gas production last month. The oil output in September fell by 6.05% from last year, while natural gas and petroleum production for the same period shrunk by 10.7% and 9.49%, respectively.

India’s Emergency Commission has allocated $16m in aid to the oil and gas industry from the PM CARES Fund established to support businesses impacted by the coronavirus pandemic. The funds will be utilised for fracking water procurement and disposal costs, with each well estimated to cost $200,000.

Alberta province decided to remove curbs imposed on crude oil production for containing the Covid-19 outbreak starting from December. The move will help reduce pipeline clogging and provide reprieve for the local economy, which is bearing the brunt of the pandemic. Approximately one-sixth of crude oil output in Alberta is currently off the grid due to Covid-19 restrictions.