Oil prices show that despite the supply-side cuts, demand continues to be under pressure
The Hinduja Group operates in various industries including automotive, oil and speciality chemicals as well as banking and finance. It runs private sector lender IndusInd Bank in India.
Along with falling demand, storage crunch also added to the big oil crash.
India is raising its crude oil storage capacity to equivalent of 87 days of demand, which include 67 days’ worth of commercial stocks held by refineries
The COVID-19 pandemic has left crude oil stranded and may have caught speculators on the wrong foot
Since India imports primarily from OPEC countries, Brent is the benchmark for oil prices in India.
Energy stocks have 12.5 percent weightage in the Nifty50 and 15.2 percent in the Sensex.
Oil price gains have been limited by concerns that an economic slowdown that has gripped large parts of Asia and Europe will dent growth in fuel demand.
Oil prices and inventory along with other telltale signs suggest we are in for tougher days ahead
Oil ports, producers and refiners in Louisiana, Mississippi and Alabama, which shut facilities ahead of Hurricane Nate, were planning to reopen on Monday as the storm moved inland, away from most energy infrastructure on the U.S. Gulf Coast.
Oil prices climbed on Tuesday, helped by expectations that an OPEC-led output cut would be extended beyond June but gains were pegged back by concerns about persistently high crude inventories.
Speaking to CNBC-TV18 David Lennox of Fat Prophets said that he doesn‘t see much of an upside in crude prices for either Brent or WTI. He hasn't changed his view on prices for Brent which stands at USD 55 and USD 50 for WTI.
Asian markets opened modestly higher on Thursday, likely taking cues from a stronger finish in the US, helped by rising oil prices and the release of dovish Fed Reserve minutes.
Lennox expects the West Texas Intermediate (WTI) prices to be at USD 45-50 per barrel and Brent at USD 50-55 per barrel levels by the end of FY16.
A weak dollar has also provided support as it makes crude cheaper for customers using other currencies.
At around 0330 GMT, US benchmark West Texas Intermediate (WTI) for delivery in June was up 31 cents, or 0.73 percent, at USD 42.95 and Brent crude for June rose 30 cents, or 0.67 percent, to USD 44.78.
Analysts believe this fall in oil prices started since June 2015 continued to be beneficial for country like India which is the major oil importer. Brent oil prices fell from USD 140-150 a barrel levels in June to around USD 30 a barrel (currently).
While the news of capping crude production has been positive for the oil industry, markets are not really convinced if capping would happen any sooner, says David Lennox, Fat Prophets.
US crude prices bounced away from 12-year lows early on Friday after comments by an OPEC energy minister sparked hopes of a coordinated production cut, yet analysts said such a move remained unlikely and that oversupply would persist.
The front-month contract for West Texas Intermediate (WTI) was down USD 1.57 at USD 30.05, having dipped below USD 30. It fell USD 2, or 5.9 percent, the session before.
BlackRock Chairman and CEO Laurence Fink said Friday he's more bullish on stocks than he was a week ago, but he believes crude hasn't hit bottom despite the recent rally in depressed oil prices.
Analysts at Barclays, Macquarie, Bank of America Merrill Lynch, Standard Chartered and Societe Generale all cut their 2016 oil forecasts this week, with Standard Chartered saying oil could fall as low as $10 per barrel