Oil
Stocks Outlook for the week – 05 to 09.01.2015
( www.rupeedesk.in )
Stocks of public sector oil companies are seen trading in a range next
week unless there is any significant movement in the broad market or crude oil prices. However,
the bias is seen positive.
Crude oil prices are likely to remain under pressure in near term.
Yesterday, Brent oil prices hit their lowest level since 2009 on concerns over growing supplies from
Russia and Iraq and continued weakness in the manufacturing sector in China and Europe.
The Indian basket also hit a fresh five-year low of $53.53 a barrel on Thursday.
None of the state-owned oil companies are likely to report their
results this month. Reliance Industries Ltd is likely to detail Oct-Dec results in the second or
third week. Falling crude prices and pressure on refining margins may continue to weigh on RIL stock.
Refining margins have remained relatively strong in Oct-Dec, but
continued pressure on oil prices, coupled with dampening demand, may eventually put pressure,
especially after the seasonal winter demand wanes. Oil and Natural Gas Corp Ltd and Oil
India may decline if crude prices fall sharply as it will erode their profitability.
Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum
Corp Ltd may remain in range next week. However, if crude prices recover or remain stable,
Stocks of both upstream and downstream companies
will witness recovery.
