Oil public sector undertakings (PSUs) like Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) have been buzzing in trade lately. JPMorgan has raised target prices for all the three players.
Probal Sen, Energy Analyst at ICICI Securities believes the companies will continue to make reasonable marketing margins as long as crude remains below $85 per barrel.
Amrita Sen, Founder & Director-Research, Energy Aspects believes that the crude prices will average in around $80 per barrel in 2024.
The Organisation of the Petroleum Exporting Countries (OPEC) is very resilient in terms of making sure that the oil market doesn’t go into oversupply, she said, adding that “Average Brent mid-$80 per barrel is our forecast at least. We are not expecting fireworks this year,” she added.
Brokerage firm Morgan Stanley wrote in a recent note that India's downstream oil refiners are in a multi-year re-rating and earnings upgrade cycle and remain "underappreciated" even after the sector's recent outperformance.
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(Edited by : Shweta Mungre)
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