OIL STOCKS OUTLOOK FOR THE WEEK – 15 TO 19.09.2014
( www.rupeedesk.in )
Stocks of state-owned oil marketing companies will continue to take cues from crude
prices, which touched an over two-year low and may remain weak in the near term, while
shares of Reliance Industries may remain under pressure due to the uncertainty over gas
prices.
The Indian basket of crude oil hit nearly $96 a barrel on Thursday, its lowest level since
Jul 2, 2012. The International Energy Agency also cut its estimate for crude demand for
this year and the next while adding that supplies will remain robust.
The Organization of the Petroleum Exporting Countries has also revised downward its
crude oil demand growth forecast. The forecasts indicate a continued weakness in oil
prices which will help improve the already perked up finances of the state-owned oil
marketing companies -- Indian Oil Corp, Bharat Petroleum Corp and Hindustan
Petroleum Corp.
Shares of these companies may remain buoyant in the near term if crude prices remain on
a weak trend though the rupee-dollar movements dictate the extent of gains. The rupee
weakened slightly this week ending at 60.66 for a dollar compared with 60.39 last week.
