Rising crude prices could put OMC margins under pressure, hurt stock rally

The S&P BSE Oil and Gas index (up 1.7 per cent) outperformed the S&P BSE Sensex (up 0.07 per cent) on Monday, despite Brent crude oil prices surpassing the $70 per barrel-mark. From a low of $36.9 hit on October 30, 2020, Brent is up 92 per cent, and analysts see further upside. Over the short-term, analysts expect Brent crude to hit $80 as OPEC+ countries curtail production, and there is recovery in fuel demand amid gradual ‘unlock’ of economies across the globe. “In the near-term, despite prices trading in an overbought zone, there is no reversal pattern on char.....

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