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In Thursday's "[I] Oil Stocks Outlook: Gains seen limited next week on absence of major cues" story, the first sentence of the fifth paragraph should read the aggregate net profit of the 10 oil and gas companies in the Nifty 200 index is expected to fall 18% on year in the March quarter. It was incorrectly stated as the December quarter.

A corrected version follows:

[I] Oil Stocks Outlook: Gains seen limited next week on absence of major cues

Informist, Thursday, Apr. 17, 2025

MUMBAI - The rise of oil stocks is likely to be limited next week in the absence of major triggers in the domestic as well as global markets, analysts said. The absence of tariff-related shocks and the recent relaxation by the US on many trading partners have provided near-term relief for many sectors, including oil and gas. The movement of global crude oil prices will also be under the radar, which has risen above $65 per barrel after falling below $60 per barrel last week.

Crude oil prices started to rise again after the US imposed new sanctions on Iran to limit its exports. Iran is the third-largest crude oil-producing nation in the Organization of the Petroleum Exporting Countries and holds the world's fourth-largest oil reserves. In a statement, the US Treasury Department said that sanctions would increase pressure on Chinese importers of oil from Iran. The US had also imposed sanctions on Chinese 'teapot', a term used for small independent oil refiners, accused of playing a role in purchasing more than $1 billion worth of Iranian crude oil, Reuters reported. 

Meanwhile, OPEC cut its estimate on global crude oil demand growth in 2025 and 2026 due to the recently announced US tariffs. OPEC has trimmed its forecast for global oil demand growth in 2025 and 2026 to 1.3 million barrels per day each from 1.4 million barrels per day in March because of the expected impact of new trade tariffs announced by the US.  

Though investors will continue to closely monitor developments related to tariffs, the focus is expected to shift primarily to the March quarter earnings, which kicked off last week. No oil companies are scheduled to release their quarterly financial results during the weekend and next week. 

The aggregate net profit of the 10 oil and gas companies in the Nifty 200 index is expected to fall 18% on year in the March quarter, according to an Informist poll. The net sales of these companies are expected to decline by 1% during the quarter. The decline in profits and sales is largely due to lower refining and marketing margins for oil marketing companies, analysts said. 

This week, shares of all oil companies which are part of the Nifty 500 index closed higher, with Oil India gaining the most by 7%, followed by Oil and Natural Gas Corp., which rose nearly 6%. The Nifty Oil & Gas index gained over 4% this week and was among the top sectoral gainers. The equity market will be shut on Friday for Good Friday. 

TOP HEADLINES
* IEA cuts 2025 global oil demand growth view to 730,000 bpd on trade tensions
* India FY25 petroleum products consumption up 2.1%, lowest growth in 4 years
* OPEC cuts oil demand growth view for 2025, 2026 on trade tariffs by US
* India needs 16.5 mln tn grains to make ethanol for petrol blending from 2025

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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