Brent crude price impact on OMC earnings recovery
pre-market1 source ↓written by the desknot a recommendation
- from ₹72
- ₹78 per barrel
- prices stay below
- ₹80 per barrel
Brent crude prices have rebounded to ₹78 per barrel from ₹72, raising concerns over the Iran conflict. Analysts suggest that oil marketing companies (OMCs) can maintain earnings recovery as long as prices stay below ₹80 per barrel. A potential increase in excise duty or cuts in retail fuel prices could negatively impact marketing margins.
• Crude prices down 35% from April peak of ₹120
• OMCs have doubled per-litre operating earnings
• Retail price cuts may hurt margins
Not investment advice. For informational purposes only.