Oil prices failed to move higher last week and the upward momentum faded in the light of increasing Opec output. US oil production also continued to inch up while US oil inventories fell across the board.
Crude prices remained subdued early on Friday after an agreement by OPEC to extend existing supply curbs disappointed many who had hoped for larger cuts.
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 proposed daily pricing of transport fuels in India would improve confidence in the sustainability of the market pricing regime as regular smaller changes in currency and crude oil prices should be easier to pass through to customers
The world’s top oil companies are back in acquisition mode, targeting smaller exploration and development firms to boost oil and gas reserves rather than the mega-mergers that followed previous slumps in crude prices.
India’s oil import bill will jump due to rise in crude prices following lower output call by OPEC as well as a steep fall in the rupee, but the oil subsidy burden is unlikely to cross the budget estimate of Rs 17,000-19,000 crore this year, says a report.