Weaker rupee clouds the outlook for oil marketing companies

Forex losses could increase with the rupee’s weakening, fear analysts, even if the refining and marketing margins improve. Refining weakness is attributed to weak cracks, higher fuel cost and unfavourable crude oil differentials. Analysts at HSBC see these trends as transient and Indian refiners could benefit from an expected diesel margin up-cycle on the back of regulations. Marketing margins, while volatile, should gradually recover. Capacity expansion and the newer and technologically advanced refineries could also drive refining margins further. Bharat Petroleum&rsq.....

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