homevideos Newsmarket Newscommodities NewsLower crude demand and higher spot price trend negative; CGD cos may be impacted: Credit Suisse

Lower crude demand and higher spot price trend negative; CGD cos may be impacted: Credit Suisse

Credit Suisse has pointed out that we are seeing concerns or fears due to new variant which may result in lower crude demand, but spot prices are higher, which is actually negative for oil and gas sector in India. City gas companies will be impacted as lower crude impacts CNG conversions as the gas input cost is high.

By Nupur Jainkunia  Nov 30, 2021 12:25:44 PM IST (Updated)

Credit Suisse has pointed out that we are seeing concerns or fears due to the new variant, which may result in lower crude demand. However, spot prices are higher, which is actually a negative for oil and gas sector in India.
City gas distribution companies will be impacted as lower crude impacts CNG conversions as the gas input cost is high.
Gujarat Gas in particular will be impacted by lower industrial margins. GAIL's 40 to 45 percent of EBITDA is linked to crude prices, so the company's profit reduced on petrochemical and LPG due to lower crude price.