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2026-04-30 05:25:44 pm | Source: Choice Institutional Equities
Comment on soaring crude oil prices by Dhaval Popat, Choice Institutional Equities
Comment on soaring crude oil prices by Dhaval Popat, Choice Institutional Equities

Below the Comment on soaring crude oil prices by Dhaval Popat Choice Institutional Equities

 

Soaring Crude prices and its impact on OMCs: 

Beyond the rise in benchmark crude prices, OMCs face additional cost pressures from higher crude premiums, elevated freight rates, and currency weakness. At the same time, even strong refining margins can turn unfavourable when retail fuel prices remain unchanged, squeezing overall profitability. Although OMCs benefited in recent years by not fully passing on lower crude prices to consumers, thereby building a margin cushion, a sustained rise in crude can rapidly erode this buffer, exposing earnings to downside risk. 

 

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