Falling margins may hurt oil refiners while a rise in crude prices is expected to help oil and gas explorers post better earnings in the January-March quarter of the financial year 2016-17.
The Singapore gross refining margins (GRMs), the Asian benchmark of profitability for refining companies, fell in the quarter-ended March over the previous three months. This will result in lower margins and inventory losses for downstream and oil marketing companies like Reliance Industries Ltd., (RIL) Indian Oil Corporation Ltd., (IOC) and Bharat Petroleum Corporation Ltd. (BPCL).
Brent crude, which is a major benchmark for purchases of oil worldwide, averaged $54.6 a barrel during the quarter, 7 percent higher over October-December period. Higher crude prices could improve realisations of upstream companies or explorers like Oil and Natural Gas Ltd. (ONGC) and Oil India Ltd. Absence of any subsidy burden will improve performance.Read More..
Credit By: Bloombergquint
Latest posts by Bloomberg Quint (see all)
- Trump Death Of Iran’s Nuclear Deal Could Set Oil Bulls Loose - March 18, 2018
- State-Owned Green Energy Firm’s IPO Likely In June - March 17, 2018
- Fastest Growing Energy Consumer Sees Clean Fuel Path On Highway - March 14, 2018