Crude Oil Price Today: If there is a rise in the price of crude oil during elections, then the income of oil companies may be in danger. If the price of Brent crude is more than $ 85 and there is a cut in the price of fuel, then there will be a threat to the earnings of oil companies.
Petrol-Diesel Price : If you are also troubled by the expensive rate of petrol-diesel, then this news will make you happy. No change has been seen in the price of petrol and diesel for more than a year and it remains almost at the same price.
But now Oil Marketing Companies (OMC) are going to reduce the rates of petrol and diesel. It is being told that in view of the elections to be held in some states in November-December this year, oil companies (OMCs) can cut the price of petrol and diesel by Rs 4-5 per liter from August.
Price will remain below $80
JM Financial Institutional Securities said in a research that the valuation of oil companies seems to be reasonable. But there remains significant uncertainty over earnings in the fuel marketing business. The strong pricing power of OPEC Plus (Opec+) may increase the price of crude oil during the next 9-12 months. Oil companies expect the price of crude oil to remain below $80 per barrel. However, this will depend on the government fully compensating the under-recovery by FY2023.
The risk to the income of companies due to the rise in crude
said in the report that the valuation of OMC is correct. But during the elections, a sharp jump in the price of crude oil can threaten the income. If the price of Brent crude is more than $ 85 and there is a cut in the price of fuel, then there may be a threat to the earnings of oil companies.
There is little chance of fuel price cut during elections. The report said that there is a risk of increase in the price of crude oil. OPEC Plus, given its strong pricing power, will continue to support Brent crude at US$ 75-80 per barrel.
Oil companies may be asked to cut petrol/diesel prices by Rs 4-5 per liter from August in view of elections in key states in November-December, as the balance sheets of OMCs have been largely streamlined And is likely to post strong profits in FY24. However, the timeline and quantum of possible cuts have not been mentioned in the report. It will depend on the price of crude oil and the position of the rupee against the dollar. (Input: IANS)
