Oil, Gas Sector Check - Rising Crude, Weaker Indian Rupee Add To OMCs’ Woes: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.After showing signs of softening in the second fortnight of September 2022, losses on Indian oil marketing companies’ retail pump sales margins on motor spirit/high speed diesel in October 2022 have widened due to the recent rise in crude oil and weakness in Indian rupee - brent is up 5% month-on-month and U.S. dollar/Indian rupee rate in Oct-22 is at Rs 82.1 versus Rs 80.3 in Sep-22. It is ironical that the above factors are eroding the potential gains in MS retail margins from the benign MS-crude spreads, which had turned negative in the last few days. HSD-crude spread has rebounded to $37.9/barrel of oil, which has increased retail HSD losses from under Rs 4/litre in the second fortnight of Sep-22 to almost Rs 12/litre in first fortnight of Oct-22. The shortage of diesel in Europe and low stocks are likely to worsen due to lower exports from China. This, along with strong jet fuel demand and persistent gas shortages are likely to result in gas being replaced with petroleum fuels to meet the rising power demand in Europe and the rest of the world..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Oil, Gas Sector Check - Rising Crude, Weaker Indian Rupee Add To OMCs’ Woes: Nirmal Bang

The shortage of diesel in Europe and low stocks are likely to worsen due to lower exports from China.

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