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Informist, Friday, Jun. 6, 2025

NEW DELHI – The outlook for listed oil companies in the coming weeks remains positive amid increasing demand for energy in the summer season and likely progress in India's trade agreement talks with the US and the European Union, analysts said. "With the floor for Nifty Oil & Gas index seen at 11200 levels in the near term, the index is eyeing 11600 levels initially and a breakout above the same would open doors for higher levels around 12130 mark in the medium term," said Sugandha Sachdeva, founder, SS WealthStreet. The Nifty Oil & Gas index ended Friday's session at 11446.90 points.

Given the current global macroeconomic uncertainties, Gaurang Shah, senior vice-president at Geojit Investment Ltd., expects crude oil prices to fall with supply outpacing demand. On Saturday, the Organization of the Petroleum Exporting Countries and its allies agreed to raise oil output in July by 411,000 barrels per day, same as in May and June. Shah estimates Brent crude oil prices to hover around $60 per barrel or below and West Texas Intermediate crude oil prices to range around $55 a barrel or below after at least a quarter.

"Most projections point towards continued moderation in the prices of key commodities, including crude oil. Notwithstanding these favourable prognoses, we need to remain watchful of weather-related uncertainties and evolving tariff-related concerns with their impact on global commodity prices," Reserve Bank of India Governor Sanjay Malhotra said Friday in his address at the conclusion of the Monetary Policy Committee's second bi-monthly meeting of the financial year 2025-26 (Apr-Mar).

The fall in crude oil prices is expected to provide some near-term margin relief to city gas distributors. However, a rise in the sourcing of US crude may hurt gross refining margins of oil marketing companies. Earlier this week, Elara Securities trimmed its target price for Oil India Ltd. to INR 552 from INR 608, due to lower crude oil prices and a slower ramp-up in gas production. The brokerage, however, maintained its ‘buy' rating on the company.

For Oil and Natural Gas Corp. Ltd., S&P Global Ratings said expanded refining and marketing margins at the company's subsidiary Hindustan Petroleum Corp. Ltd. will support profitability of the group's downstream operations. This is on the assumption that prices at fuel pumps remain largely unchanged amid cheaper feedstock prices, the credit rating agency added.

TOP HEADLINES

* Chennai Petro to set up retail fuel outlets with INR 4-bln capex over 2-3 yrs
* Oil India starts gas production from Bakhritibba Block in Rajasthan
* IOC cuts 19-kg LPG cylinder price by INR 24 in Delhi to INR 1,723.50
* IOC slashes ATF price by INR 2,414.25/kl to INR 83,072.55/kl in Delhi
* BPCL to replace Mumbai refinery cracking unit at gross capex of INR 142 bln
* IOC to set up green hydrogen generation unit in Panipat
* Minister says will compensate oil cos for INR 400 bln under-recovery FY25

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

End

Reported by Shakshi Jain

Edited by Nishant Maher

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