Oil Stocks Outlook: To track broad mkt next wk on no price hike
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K.Karthik Raja
Feb 9, 2008, 2:49:51 AM2/9/08
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Oil Stocks Outlook: To track broad mkt next wk on no price hike
NEW DELHI - Shares of oil marketing companies are expected to move
in line with the broad indices next week as the only positive factor
of a possible fuel price hike seems unlikely now.
"The government seems to be waiting for crude prices to ease
further to avoid an increase in petrol and diesel prices. Beside the
fuel price hike, there are no major triggers in the sector that can
move the stocks beyond the movement of the broader markets. The oil
marketing stocks would remain range-bound.
The Cabinet did not discuss the proposal to hike petrol and diesel
prices at its meeting Thursday.
Petroleum and Natural Gas Minister Murli Deora said Friday the
ministerial panel will meet next week to discuss fuel price hike.
He, however, declined to say if a decision will be taken at the
next
meeting of the group of minister on fuels.
An oil ministry official said "the issue (of price hike) seems to
have
taken a backseat for the time being due to opposition from various
quarters. Even a symbolic hike is not acceptable to many in the ruling
United Progressive Alliance government."
Global crude prices that had eased in the recent weeks had shot up
on supply concerns from Nigeria.
Crude oil for March delivery on the New York Mercantile Exchange
Friday closed at $91.77 a barrel, up $3.66 from Thursday. This was the
highest close of the commodity on New York Mercantile Exchange since
Jan 30 and biggest gain since Dec 12.
Research said supply stoppage of 130,000 barrels a day of oil from
Royal Dutch Shell's unit in Nigeria due to non-completion of repairs,
has led to this rise in prices.
Lack of any decision on fuel prices coupled with the latest bounce
back of crude prices could spoil the party being witnessed on the oil
marketing counters
All the three state-run oil marketing companies--Indian Oil Corp
Ltd,
Hindustan Petroleum Corp Ltd, and Bharat Petroleum Corp Ltd--ended
with 2.1% to 3.2% gains on the National Stock Exchange Friday even as
the broader indices remained weak.
.
Below are today's closing share prices, in rupees, of leading oil
companies on National Stock Exchange today, compared with a week
ago: .
Company Closing price Closing price %
Change
Feb 8 Feb
1
.
Oil and Natural Gas Corp 996.30 1,045.90
(-) 4.7
Indian Oil Corp 515.85
492.30 4.8
Bharat Petroleum Corp 438.00
386.10 13.4
Hindustan Petroleum Corp 278.25 262.85
5.9
Reliance Industries 2,426.40 2,542.75
(-) 4.6
Cairn India 193.95
203.55 (-) 4.7
.
Nifty 5120.35
5317.25 (-) 3.7
Sensex 17464.89
18242.58 (-) 4.3
NEW DELHI - Shares of oil marketing companies are expected to move
in line with the broad indices next week as the only positive factor
of a possible fuel price hike seems unlikely now.
"The government seems to be waiting for crude prices to ease
further to avoid an increase in petrol and diesel prices. Beside the
fuel price hike, there are no major triggers in the sector that can
move the stocks beyond the movement of the broader markets. The oil
marketing stocks would remain range-bound.
The Cabinet did not discuss the proposal to hike petrol and diesel
prices at its meeting Thursday.
Petroleum and Natural Gas Minister Murli Deora said Friday the
ministerial panel will meet next week to discuss fuel price hike.
He, however, declined to say if a decision will be taken at the
next
meeting of the group of minister on fuels.
An oil ministry official said "the issue (of price hike) seems to
have
taken a backseat for the time being due to opposition from various
quarters. Even a symbolic hike is not acceptable to many in the ruling
United Progressive Alliance government."
Global crude prices that had eased in the recent weeks had shot up
on supply concerns from Nigeria.
Crude oil for March delivery on the New York Mercantile Exchange
Friday closed at $91.77 a barrel, up $3.66 from Thursday. This was the
highest close of the commodity on New York Mercantile Exchange since
Jan 30 and biggest gain since Dec 12.
Research said supply stoppage of 130,000 barrels a day of oil from
Royal Dutch Shell's unit in Nigeria due to non-completion of repairs,
has led to this rise in prices.
Lack of any decision on fuel prices coupled with the latest bounce
back of crude prices could spoil the party being witnessed on the oil
marketing counters
All the three state-run oil marketing companies--Indian Oil Corp
Ltd,
Hindustan Petroleum Corp Ltd, and Bharat Petroleum Corp Ltd--ended
with 2.1% to 3.2% gains on the National Stock Exchange Friday even as
the broader indices remained weak.
.
Below are today's closing share prices, in rupees, of leading oil
companies on National Stock Exchange today, compared with a week
ago: .
Company Closing price Closing price %
Change
Feb 8 Feb
1
.
Oil and Natural Gas Corp 996.30 1,045.90
(-) 4.7
Indian Oil Corp 515.85
492.30 4.8
Bharat Petroleum Corp 438.00
386.10 13.4
Hindustan Petroleum Corp 278.25 262.85
5.9
Reliance Industries 2,426.40 2,542.75
(-) 4.6
Cairn India 193.95
203.55 (-) 4.7
.
Nifty 5120.35
5317.25 (-) 3.7
Sensex 17464.89
18242.58 (-) 4.3
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