Oil Stocks Outlook for the week - 30.03.2015 to 01.04.2015
( www.rupeedesk.in )
Stocks
of state-owned oil marketing companies are likely to be down next week as
global crude oil prices are seen increasing post air strikes on Yemen by Saudi
Arabia and its allies. On Thursday, crude oil futures on the New York
Mercantile Exchange settled at a three-week high as a coalition led by Saudi
Arabia launched air strikes against Houthi rebels in Yemen,
triggering
supply concerns.
Oil
secretary Saurabh Chandra yesterday said there is immense uncertainty in the
sector due to air strikes. Yemen isn't an oil producer, but is a strategic
supply route for oil imports for many countries. Yemen controls straits through
which oil containers pass. So, tensions in the region could result in serious
disruptions and fuel price spikes.
According
to reports, gas price is likely to be slashed by 9% to $4.56 per unit from
April 1,
which
could hurt revenues of producers such as Oil and Natural Gas Corp Ltd, and
Reliance
Industries
Ltd. Speculative will also be cautious as the coming week has only three
trading days.
Market
will be closed on Thursday and Friday on account of the Mahavir Jayanti and
Good
Friday, respectively.