Oil Stocks Outlook for the week – 16 to 20.06.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks of oil-marketing companies may
fall further next week after the companies led by
public sector oil retailers suffered
losses in yesterday's trade. Stock prices of oilmarketing
companies took a hit as crude oil
prices rose to a nine-month high due to
escalating geopolitical tensions in
Iraq. Stocks may remain weak if the situation in Iraq
does not improve, which may affect
oil supply from the country.
US President Barack Obama warned of a
possible military intervention if the situation in
Iraq deteriorates. However, the fall
in the stocks of Indian Oil Corp, Bharat Petroleum
Corp Ltd and Hindustan Petroleum Corp
Ltd may be cushioned if they raise prices of
petrol over the weekend.
Stocks of private upstream companies
Reliance Industries and Cairn India may gain with
the expected rise in global crude oil
prices. State-owned exploration companies Oil and
Natural Gas Corp and Oil India may
not be able to gain from the rise in crude prices on
fears that it could also translate to
a higher share in their subsidy burden.
