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Informist, Friday, Sep 13, 2024

MUMBAI - Price changes in crude oil are expected to dictate the direction of shares of oil companies next week, analysts tracking the sector at two broking firms said. Crude oil prices are expected to rise further in the short-to-medium term, especially with the Organization of the Petroleum Exporting Countries and allies delaying their plan to increase production, they said.

Prabhudas Lilladher is of the view that crude oil prices will return to the level of $75-80 per bbl. "While upstream earnings are currently impacted with OPEC+ delaying its planned rise in production, we expect oil prices to rebound to $75-80/bbl in the near term," the brokerage said in a report this week.

At 1951 IST, Brent Crude futures on the Intercontinental Exchange were up 1.3% at $72.92 per bbl. Earlier, crude oil prices fell below $68 per bbl, the lowest level since 2021, on hopes that the dispute in Libya would be resolved and supply concerns would ease.

The Nifty Oil & Gas index closed 0.7% lower and was the major sectoral laggard. Shares of most oil companies declined on a weekly basis. An outlier was Oil India, which closed 1.2% higher at 585.60 rupees on the National Stock Exchange. 

The US Federal Reserve's interest rate decision on Wednesday is also likely to determine the overall market's movement in the second half of next week, analysts said. Though a reduction in interest rates is mostly factored in, views are divided on whether the Fed will cut rates by 25 basis points or 50 bps. Today, the Nifty 50 and BSE Sensex closed 0.1% lower each at 25356.50 points and 82890.94 points, respectively. 

TOP HEADLINES
* PRESS: Govt may cut fuel prices if crude rate continues to fall
* IEA trims 2024 global oil demand growth view on poor China consumption
* BPCL to invest 11.38 bln rupees for capacity addition of 2 pipelines
* BPCL to set up JVs with Sembcorp, GPS Renewable in green energy push
* Bharat Petroleum arm-IOC SPV gets oil production rights in Abu Dhabi
* HPCL board OKs Vizag-Raipur pipeline project for 22.12 bln rupees
* HPCL board appoints K Vinod as CFO effective today
* EIA sees crude prices rising again in coming mos as inventories fall
* Oil India signs MoU with IRH to develop global critical mineral
* India crude oil basket prices
* Indian Oil keeps petrol, diesel prices unchanged in Delhi
* IOC, Abu Dhabi Natl Oil Co ink pact for long-term LNG supply
* Oil India joins Oil and Gas Decarbonization Charter
* Mazagon Dock gets order worth 14.86 bln rupees from ONGC
* OPEC, allies extend voluntary production cuts until end November

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

US$1 = 83.88 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Anjana Therese Antony
Edited by Rajeev Pai

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