Oil stocks show mix reactions to OPEC+ production cut; HPCL, BPCL down 4-5%. Here's why!
Oil stocks are in focus after several OPEC+ countries, led by Saudi Arabia, announced voluntary cuts from May 2023 to end-2023 of nearly 1.1mb/d. Oil market is expected to get tighter after the OPEC+ output cut couple with higher oil prices. Indian OMCs are seen likely to be under pressure.
Oil stocks traded broadly on a mixed note during Monday's session after the Organization of the Petroleum Exporting Countries (OPEC) trimmed production for the current year. OMCs such as HPCL and BPCL took a massive hit and plunged by 4-5%. Heavyweight RIL and Adani Group's Adani Total Gas were also under pressure. However, Petronet LNG and ONGC emerged as top gainers. Also, crude oil prices have shot up sharply. Investors are cautious as oil market is seen to get tighter ahead.
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