Oil marketing companies (OMCs) will likely remain under pressure due to the slim global demand outlook of 2025 and elevated price risks, resulting in weak fundamentals in the near-term. Domestic brokerage firm Motilal Oswal Financial Services highlighted that the oil demand growth is estimated at one million barrels per day (mbd) while global oil supply growth is estimated at 1.8 mb/d.
‘’With OPEC+ is looking to unwind spare production capacity, we see some risk to net realizations of $ 73-74/bbl for upstream companies in CY25. We think that the best way to play in a range-bound oil price environment with rising downside risks is oil marketing companies, where HPCL is our preferred pick.” said the brokerage.
Published: 13 Jun 2024, 07:53 PM IST
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