Crude Oil share price target

Brent crude oil prices jumped above $65 per barrel for the first time since 2015 after the shutdown of the Forties North Sea pipeline knocked out significant supply from a market that was...

Crude oil prices settled lower on Wednesday after data showing crude stockpiles fell for the third straight week failed to offset a larger-than-expected build in gasoline supplies.

Crude oil prices gained yesterday ahead of key OPEC review of oil output curb meeting on November 30. Also adding to positive sentiment on oil prices was an announcement by TransCanada...

Crude oil prices extended their decline on Monday ahead of next week's OPEC meeting to extend crude oil production cut beyond March 2018. The expectation is for the group to extend the...

Oil prices dropped yesterday to end near its more than one week low after the International Energy Agency cut its global crude-demand forecasts and warned of a boom in U.S. shale-oil production.

Downstream: Results will be weak sequentially, led by (1) A fall in GRM, (2) Strong INR, and (3) Absence of huge inventory gains that OMCs enjoyed in 3QFY17. Our top pick is IOC. Upstream players: Oil prices remain strong. However, domestic natural gas prices were muted. Volumes will be flat for ONGC and Oil India. We expect crude prices to remain range-bound at ~USD 55/bbl. We see potential in both ONGC and OIL, if crude prices remain stable. We are upgrading ONGC and Oil India to BUY.

We believe that the production cut will possibly prop up prices in the short term towards $57-$60. However, the impact of production cut may not be sustainable over longer term, as at higher price it

Lower raw material prices and higher export contribution to enhance margins: In the last six years, despite volatile raw material prices, Garware-Wall Ropes (GWRL) has maintained its operating margin in the range of 10-11%. The companys key raw materials are crude based; the recent decline in crude prices has resultantly had a favorable impact on the companys margins. Crude prices have declined by ~37% on an YTD basis and by ~40% on a yoy basis. The companys EBITDA margins, as a result, expanded by 145bp yoy in 1HFY2016. Crude prices are likely to continue to remain soft and thereby translate into lower raw material (high density polyethylene, polyethylene, nylon etc) prices for the company, which in turn will result in improvement in the companys EBITDA margin going forward. Moreover, higher contribution of exports as well as better product mix augurs well for the company. Debt repayment and improving return ratios: The company is continuously generating higher cash flows, which has resulted in debt reduction and improvement in ROE. The company has been consistently repaying debt over the past four years, resulting in debt having come down from ~Rs140cr in FY2012 to Rs45cr in FY2015. Going forward, we believe the company...

ONGC reported an EBITDA of Rs 121.3bn (-4% YoY). Impact of higher net oil realisation ( 25%) was negated by higher other expenses ( 56%). However, lower exploration write-offs (-60%) led to a PAT of Rs 34.6bn ( 14%).

The oil sector has seen unprecedented upheaval since Sep-14. Crude prices have cracked ~50% and are currently at ~USD 55/bbl. The popular consensus is that crude will remain muted owing to rising shale oil supplies in USA, a persistent focus on market share by OPEC and high crude inventories globally. Surprisingly, Singapore complex gross refining margins (SGRMs) have doubled to ~USD 10/bbl.