Oil Stocks Outlook for the week – 10 to 14.07.2017
Oil Stocks Outlook for the week – 10 to 14.07.2017
( www.rupeedesk.in )
The shares of public sector oil refiners and retailers Indian Oil Corp, Bharat Petroleum Corp and
Hindustan Petroleum Corp may continue to consolidate next week after recovering from a shortterm
correction. As for fundamentals, these companies remain on solid ground, benefiting from the rise in domestic demand for fuels as well as robust refining and marketing margins. These factors lent positive fundamental outlook for these stocks in the medium-to-long term. In the absence of any major sectoral triggers, shares of oil companies could be impacted by prices of crude oil and sentiment in the broad market. Crude oil futures on global and domestic exchanges are seen in the red next week, on concern of excess supply amid a rise in production from the Organization of the Petroleum Exporting Countries as well as the US. Traders will also eye the oil cartel's monthly production report, due next week. According to preliminary surveys, production from the countries in the organisation had risen in June, which is seen weighing on prices. The rise in production could largely be attributed to higher output in Libya and Nigeria, which are exempt from the oil cartel's output cut deal. Libya is pumping more than 1 mln barrel per day, the highest in four years. Reports that oil exports from the Organization of the Petroleum Exporting Countries are seen rising in June, despite a cut in production, also unsettled investors. Stocks of upstream players such as Oil and Natural Gas Corp and Oil India may remain weak on account of low crude oil prices.
Source : Cogencis Information Services Ltd.
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Oil Stocks Outlook for the week – 10 to 14.07.2017
( www.rupeedesk.in )
The shares of public sector oil refiners and retailers Indian Oil Corp, Bharat Petroleum Corp and
Hindustan Petroleum Corp may continue to consolidate next week after recovering from a shortterm
correction. As for fundamentals, these companies remain on solid ground, benefiting from the rise in domestic demand for fuels as well as robust refining and marketing margins. These factors lent positive fundamental outlook for these stocks in the medium-to-long term. In the absence of any major sectoral triggers, shares of oil companies could be impacted by prices of crude oil and sentiment in the broad market. Crude oil futures on global and domestic exchanges are seen in the red next week, on concern of excess supply amid a rise in production from the Organization of the Petroleum Exporting Countries as well as the US. Traders will also eye the oil cartel's monthly production report, due next week. According to preliminary surveys, production from the countries in the organisation had risen in June, which is seen weighing on prices. The rise in production could largely be attributed to higher output in Libya and Nigeria, which are exempt from the oil cartel's output cut deal. Libya is pumping more than 1 mln barrel per day, the highest in four years. Reports that oil exports from the Organization of the Petroleum Exporting Countries are seen rising in June, despite a cut in production, also unsettled investors. Stocks of upstream players such as Oil and Natural Gas Corp and Oil India may remain weak on account of low crude oil prices.
Source : Cogencis Information Services Ltd.
