New Delhi, February 6th (IANS) Crude oil prices are expected to remain bound to range at a barrel average of $75 to $80 over the next six months. This is essentially at the back of the overall global global crude oil production supported by increased crude oil production. Demand growth is expected to remain relatively calm against the backdrop of a major global economy slowdown, according to the CAREEDGE RATINGS report released Thursday.
Higher thrust for electric vehicles (EVs) and alternative fuels is also expected to attenuate demand for oil.
The report says that lower crude oil prices will improve retail margins for petroleum marketing companies such as Indian oil, Bharat oil and Hindustan oil.
Increased retail margins for oil marketing companies offset the impact of reduced total refinery margins, which is expected to be better for integrated players in both the refinery and fuel retailers compared to standalone refiners. It is expected to do so.
In the first nine months of 2025, the Indian public sector oil marketing company (OMCS) averaged $4.8 per barrel, $11.75 in 2024 and 17 in 2023. It was observed to be dollars. This was largely due to a decrease in discounts available when procuring Russian crude oil, particularly diesel, which had previously surged in the aftermath of the Russian-Freine War.
Going forward, CareEdge ratings predict that India’s PSU OMC’s GRMS will remain in the $4-$6/bbl range over the next six months.
“Improved retail margins for OMCS are expected to offset the impact of reduced GRM, which means that integrated players present in both refinery and fuel retailers will be more likely to compare to standalone refiners. It is expected to improve. Also, the excellent retail margins in the domestic market will focus on expanding the retail network, especially during fiscal year 2003, rather than focusing on more profitable exports. It’s become.”
The fuel retailer’s petrol and diesel retail margins have been significantly improved with the Q3FY25, and along with the easing of OMCS’ GRMS, it has been significantly improved to 9 liters/liter at the back of the drop in crude oil prices.
Given that crude prices are unlikely to rise significantly and GRMS is expected to remain bound to range for the next six months, the blended retail margin ranges from 7-9 liters/liter It is expected to remain healthy. The report says it offers a range of streamlining retail prices for petrol and diesel, which have remained stagnant for a long time.
-Ann
SPS/SVN
