BPCL had some good news to share this morning. Maybe most of us are hearing this for the first time in our lifetime – the company has decided to cut its oil imports from Saudi by 50% for the month of May.

This is because it no longer has space to store more oil, all its tankers are full. So while there is the advantage of lower crude price, the lowest over the past 18 years now, demand itself is low.

While it might be good news for the country’s fiscal deficit, for the company it means that it is processing lesser and lesser. BPCL’s average crude processing has declined from 90% in end of March to 60% in the first week of April.

ICICI Direct put out a report stating that OMCs make inventory losses in a falling market as the cost of the inventory in the form of crude and products is higher that the prevailing prices. It has projected that BPCL may report a net loss of Rs 556 crore in Q4.

The stock price rose to an intraday high today at Rs.364.95, up over 3%. It has come of this high of the day and is now just about holding to the green at Rs.355, up 0.5%.