CRUDE OIL AND STOCK MARKET

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As we all know India is importing 82.8%   crude oil and 45.3% for natural gas/LNG. The net foreign exchange outgo is 63.305 billion US$. India is exchanging this oil with dollars. crude prices will get affected by dollar VS Indian Rupee prices. crude oil prices are basically decided with the help of 3 major oil fields NYSE crude prices, Brent crude prices, and WTI crude prices

Indian rate will be decided based upon Brent crude prices. it means Brent oil fields show the rate and location of Europe, Africa, middle east. Organization of the Petroleum Exporting Countries (OPEC) also have control over crude oil prices. rate of crude oil is very less and very high this both are harmful rate above $70 / barrel is also not good. because more than 75 % of business is always dependent on this crude oil prices and if crude oil prices will get increased too much or decreased too much will affect both sides of the economies one who is importing and simultaneously one who is exporting.

Due to fluctuation in dollar rate, India is doing barter trade with some countries like exchanging crude oil for other commodities. if crude oil prices get increased too much then people will always be looking for conventional energy sources and this will again reduce the demand in the international market. the demand for crude oil will always be higher in the winter season than in all other seasons 

Mainly Oil exploration companies like  

Company Name

Last Price

Change

% Change

Net Sales
(Rs. cr)

ONGC

131.50

0.25

0.19

109,654.55

GAIL

123.35

0.45

0.37

75,126.30

Petronet LNG

232.60

-4.05

-1.71

38,395.43

Oil India

154.50

3.25

2.15

13,734.96

Gujarat Gas

185.25

3.90

2.15

7,754.41

IGL

310.50

8.25

2.73

5,764.84

Guj State Petro

215.10

3.60

1.70

1,877.19

Alphageo

162.10

-12.90

-7.37

405.08

Aban Offshore

26.70

1.25

4.91

262.89

Deep Industries

107.50

1.80

1.70

259.12

HOEC

102.50

-9.40

-8.40

236.89

Jindal Drilling

76.85

0.65

0.85

207.39

Asian Oilfield

79.05

-0.35

-0.44

156.82

Selan Explore

142.95

-3.40

-2.32

93.33

Dolphin Offshor

22.75

1.50

7.06

54.81

Duke Offsh

 

 

If crude oil prices get decreased all these companies will be at a loss because there will be high demand for imported crude oil and their sales and the profit margin will get affected and industries related to Oil explorations like drilling pipe manufacturing companies and transportation-related companies will get affected. if the price is high in the international market then all these companies will get benefited

 Oil marketing companies like

  • ·         Bharat Petroleum.
  • ·         Reliance Petroleum Limited. ...
  • ·         Essar Oil Limited. ...
  • ·         Cairn India. ...
  • ·         Gas Authority of India. ...
  • ·         Hindustan Petroleum Corporation. ...
  • ·         Oil India Ltd. ...
  • ·         Tata Petro dyne.

If crude oil prices are low in the international market all of these marketing companies will get benefited with a good margin. opposite to that economic condition and all other industries like Plastic, Detergent, Foot ware, Tire, Fertilizers, and Flight companies like Indigo and Air India will get impacted. if prices get raised in the international market then these Oil marketing companies will get worst affected

Oil-producing companies like

  • ·         Reliance IND,
  • ·         ONGC,
  • ·         Oil INDIA,
  • ·         GUJARAT GAS etc.

If the crude oil price is higher in the international market, then Oil-producing companies will get benefitted from this situation despite economic loss  

Recently crude oil prices have touched 70 and we have observed a rally in oil-producing companies. as per crude oil commodities, we can able to relate our market. when crude oil gets up our market always falls drastically if any natural calamity or War or accidents like an Evergreen ship in Suez The canal can affect the prices of crude oil and we can say that crude oil is the blood of the market. so we can able to relate this scenario with drastic exactly opposite move on our chart

 

Thank You

 

 

  

Comments

  1. Unknown20 October 2021 at 12:11

    The info that you provide is just Great! I just want to understand in detail what is support and resistance?

    ReplyDelete

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