Oil Stocks Outlook For The Week – 18 to 22.12.2017

Oil Stocks Outlook For The Week – 18 to 22.12.2017

             Equity Cash/Futures/Options Segment 

The shares of state owned refiners and fuel retailers Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp--are expected to trade in a narrow range with an underlying positive bias next week. In terms of fundamentals, the three state-owned oil marketing companies continue to be on solid ground, benefiting from healthy domestic demand for fuel as well as robust core refining and marketing margins, which lend a positive outlook to these stocks. Seen upbeat; unwinding of positions may cap gain In the absence of any major sectoral triggers, stocks of oil companies are expected to be guided by the movement in crude oil prices, news flow, and the sentiment in the broader market. Futures contracts of crude oil are likely to move in a range with an upward bias next week due to outages in the North Sea pipeline and an output cut by the Organization of the Petroleum Exporting Countries and other major producers. However, rising US output is seen capping gains. The Forties pipeline in the North Sea will remain shut for a couple of weeks following a hairline crack. The pipeline carries about 450,000 barrels of oil per day. The decision by the OPEC and other producers to extend the production cut of 1.8 mln bbl per day till the end of 2018 is also likely to support prices.

Source : Cogencis Information Services Ltd.

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