Oil And Gas Sector Check - Refining Bottoming Out; Marketing Margins Remain Robust: Motilal Oswal

Motilal Oswal Report

Refining has had a slow start in Q1 FY25, but we anticipate a recovery as the summer driving season begins in the U.S (from July 2024) and oil demand growth improves in H2 FY25. The marketing margins have remained robust, with oil declining to $ 83/barrel of oil in May 2024 year to date.

The current motor spirit and high speed diesel marketing margins are ~Rs 5/liter each versus our assumptions of Rs 3.3/litre each for both MS and HSD.

With oil prices declining to near $ 83/bbl recently, the focus remains on OPEC’s upcoming meeting in early June 2024. With OPEC’s spare capacity at a multiyear high and strong non-OPEC supply growth,

we believe the likelihood of OPEC not extending production cuts is increasing. As such, we believe oil prices will remain within a specific range in the coming months.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.