Crude oil prices increased on expectations that Opec and its friends will extend their supply cuts. Back home, expectations of crude oil prices firming up sent jitters across shares of state-run oil marketing companies (OMCs), taking them lower by 2.4-4.1%. Typically, investors worry whether these companies will be able to pass on higher crude oil prices to end consumers. Sure, the benchmark Singapore gross refining margin (GRM) is estimated to have marginally improved in the June quarter on a sequential basis. True, OMC stocks have recovered their early October losses, when the government had asked these companies to forego a portion of their marketing margins.

Source: Mint July 01, 2019 12:56 UTC