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Informist, Friday, Nov. 22, 2024

MUMBAI - The developments in the war between Russia and Ukraine are expected to determine the direction of oil company shares next week. "It is too early to say that the tension between Ukraine and Russia has subsided," an analyst tracking the sector at a domestic broking firm said, adding that Russian President Vladimir Putin's threat of a nuclear attack needs to be looked at. The developments related to the conflict between Israel and Iran will also be closely monitored.

Crude oil is a key raw material used by oil refining companies and any surge in its prices could negatively impact their profitability. On the other hand, it aids the revenue of oil producers as they can sell their output at a higher price. At 2030 IST, Brent Crude on the Intercontinental Exchange was up 0.4% at $74.57 per barrel. It has risen 5% or $3.59 per barrel from the previous week.

Russia is the world's fourth-largest oil exporter and Iran, a member of the Organization of the Petroleum Exporting Countries, is the third-largest oil producer in the oil cartel. The geopolitical tension in these regions has been causing concerns about global oil supply. According to the US Energy Information Administration, Russia was the third-largest oil producer in the world in 2023, constituting 11% of global output.

Putin on Thursday said Russia used a ballistic missile with a non-nuclear hypersonic warhead against the city of Dnipro in central Ukraine, Reuters reported. This follows the Ukraine army's tactical missile strike within Russia on Tuesday. Reports also said that Putin approved a change to the country's nuclear doctrine, allowing a Russian nuclear response to the use of conventional weapons.  

Analysts said India's oil and gas was among the sectors that saw the highest foreign outflows in November. This week, the Nifty Oil & Gas index extended its fall for the third consecutive week. 

TOP HEADLINES
* PRESS: BPCL to establish INR 600-bln oil refinery in Ramayapatnam, Andhra
* SC junks SEBI appeal against quashing of INR 250 mln fine on RIL promoters
* Delhi HC notice to Pure E&P AS on ONGC's plea for payment of arbitral award
* Indian Oil keeps petrol, diesel prices unchanged in Delhi
* IEA sees global oil demand growing by 920,000 bpd to 102.8 mln bpd in 2024
* EIA sees oil stocks falling in coming months on OPEC cuts, geopolitical risk
* OPEC actively reviewing decision on production cuts, says Oil Minister Puri

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

Reported by Anjana Therese Antony
Edited by Saji George Titus

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