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Comment on oil and gas stocks By Vinod Nair, Head of Research at Geojit Financial Services.

"Upstream companies are currently benefited by higher spot prices of oil, leading to strong earnings, while refiners are benefited from higher GRMs. This trend is expected to continue in FY23, as OPEC will continue to maintain its current production levels. Going ahead, if oil prices remain elevated, the oil marketing companies (OMCs) will be impacted by higher under-recoveries unless we have a calibrated hike in retail fuel prices. We remain positive on upstream companies in the short term but over the medium to long term, we expect oil prices to correct as the supply constraints and geopolitical tensions relieve. Given higher volatility in earnings, overall, we have a neutral view on the sector"

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