- Crude oil is currently at multi-month high above $87 a barrel, causing focus on oil marketing companies.
- Supply curtailment rather than a significant increase in demand has been driving the recent uptrend in oil prices.
- Predictions suggest oil should range between $75 to $85 a barrel for the next 12 to 18 months.
- This forecast implies a favorable macro environment for oil marketing companies (OMCs) and PSU stocks in general.
- City Gas Distribution companies experienced a price cut, but it wasn't attributed to the oil Minister's comments.
- IGL and Gujarat Gas maintain reasonable margins compared to other players in the sector.
- The emergence of electric vehicles (EVs) and alternative fuels will likely make the sector more trading-oriented.
- Among the gas distribution companies, Torrent Power stands out due to surplus capacity and favorable merchant power rates.
- OMCs and Oil India are considered cheap and are viewed favorably with potential for relative outperformance.
- Overall, there's optimism for oil and gas stocks, especially in the context of sustained refining margins and relative stability in oil prices.
