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Informist, Friday, Nov. 28, 2025

MUMBAI – Shares of oil marketing companies remain top pick in the oil and gas space and the bias is expected to remain positive for these equities in the near term. Media reports said the Organization of the Petroleum Exporting Countries and its allies are expected to announce their decision about its crude oil output.

OPEC and its allies have been gradually raising output in 2025 and are expected to keep their policy to pause hikes in the first quarter of 2026 unchanged, the two delegates of the group told Reuters. The movement in global crude oil prices will be closely watched, particularly after the group's meeting. The Brent crude oil futures contract has been trading lower for the fourth consecutive month, falling 12% or more than $8 per barrel during this period. At 1806 IST, the January Brent contract traded on the Intercontinental Exchange was down 0.2% at $63.24 per barrel. 

In November, OPEC had agreed to hike output in December by a small amount and also decided to pause production hikes for the March quarter. The organisation had also said it will implement a production increase of 137,000 barrels per day of crude oil in December from the 1.65 million barrels per day of additional voluntary adjustments announced in April 2023. 

ICICI Securities has retained its 'buy' rating on Indian Oil Corp., Hindustan Petroleum Corp. and Bharat Petroleum Corp. These three companies have steadily expanded their refining capacity over the last 3-4 years, with the refining to marketing mix expected to improve to 86% in 2027-28 (Apr-Mar) from 82% in FY25, it said in its report. This will likely help mitigate margin volatility in refining or marketing over the next 18–24 months, it added. 

The broking firm remains "sanguine" on the earnings-per-share estimates for the three oil marketing companies for the next 12-18 months, notwithstanding the sensitivities and downside risks that are emerging. The valuation of Indian Oil Corp. is 7.8 times the FY28 EPS, that of BPCL is 8.2 times, and that of HPCL is 5.8 times, ICICI Securities said. 

This week, shares of most oil companies which are part of the Nifty 200 index declined, with HPCL and Indian Oil Corp. falling the most, down 3% each. On the other hand, Reliance Industries was the sole gainer, up 1.4% from the previous week. 

TOP HEADLINES

* EIA says US natural gas stocks down 11 bcf in week ended Nov 21
* India's Nov Russian crude imports seen at 5-mo high on frontloading - Kpler
* S&P Global withdraws 'BBB' rating on unsecured notes of ONGC's Singapore arm

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

End

US$1 = INR 89.45

Reported by Anjana Therese Antony

Edited by Deepshikha Bhardwaj

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