Oil Stocks Outlook For The Week - 17 To 21.12.2018

Oil Stocks Outlook For The Week - 17 To 21.12.2018

             Equity Cash/Futures/Options Segment 

Stocks of public sector oil companies--upstream as well as downstream--are seen trading in a narrow range next week. Investors are expected to keep a close eye on international prices of crude oil and the broader market for cues. Higher crude oil prices would be positive for stocks of upstream players like Oil and Natural Gas Corp Ltd and Oil India Ltd. For refiners like Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd, and Hindustan Petroleum Corp Ltd, lower oil prices would be better.Crude oil contracts on the domestic and global exchanges may swing between losses and gains next week amid mixed cues from expectations that markets in 2019 may be balanced in terms of supply-demand and worries over a buildup in inventories. The International Energy Agency forecast a supply deficit in the Apr-Jun due to supply cuts by major producers, as opposed to a month ago when it expected a persistent surplus in 2019. The Organization of the Petroleum Exporting Countries and its allies agreed last week to cut oil production by 1.2 mln barrels per day which is more than what the market had expected. However, there are doubts over the production cut as there is an absence of specific country quotas apart barring Oman. Oman is likely to reduce oil output by 2% from January for an initial period of six months.

Source : Cogencis Information Services Ltd.

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