GOLDEN RULES FOR TRADING

Oil Stocks Outlook for the week – 07 to 10.10.2014

Oil Stocks Outlook for the week – 07 to 10.10.2014
www.rupeedesk.in )

Stocks of public sector oil marketing companies are expected to receive a boost coming week
because of the buzz over the possibility of deregulation of diesel prices.


According to media reports, the Cabinet is likely to take up the issue of deregulation of diesel
prices in its meeting this week. If approved, the companies will have freedom to revise price of the fuel as and when needed. Stocks of the three public sector oil marketing companies Indian Oil Corp Ltd, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd witnessed a healthy rise during last three sessions.


Supported by a sharp decline in crude oil prices in the past few weeks, the oil marketing
companies are now making a profit of 1.90 rupees a liter on sale of subsidised diesel. Stocks of major exploration companies are expected to recover coming week.
Stocks of Reliance Industries, Oil and Natural Gas Corp Ltd and Oil India Ltd took a hit last
week after the government decided to defer the decision on gas pricing till mid-November. 


The movement in stocks of the upstream companies will also be influenced by the movement in crude oil prices this week. The price of the Indian basket of crude remains low and still hovers around $95 a barrel.