Why Brent Crude prices have moved up sharply and what does that mean for Indian oil companies like ONGC, IOCL and HPCL?
Answer
Answer
Brent has gotten close to $52/bbl due to strong demand likely from global recovery, OPEC supply cuts and falling US stockpiles. For the upstream and downstream companies, higher crude prices mean better realizations on oil per barrel, better gross refining margins and inventory translation at better rates. That is why the oil rally.