Wednesday, September 30
US President Donald Trump on Monday issued a sharp warning to global oil producers over rising prices, urging them to hold back any move that could increase costs for consumers. This comes amid growing market concerns over the potential fallout from America’s direct military involvement in Israel’s war with Iran. “EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!” Trump posted on Truth Social, a day after U.S. bunker-busting strikes reportedly targeted Iranian-linked sites. “To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!” Trump wrote in another post. Despite the sharp rhetoric, global markets showed a cautious but measured response. Oil prices, which spiked as much as 4% after trading opened
The recent rise in crude oil prices may prove beneficial not only for upstream oil companies but also for oil marketing companies (OMCs), according to a report by domestic brokerage firm Kotak Institutional Equities.In a recent note, the brokerage highlights that the latest rally in oil prices, with Brent crude being up 15% since early June, could aid upstream companies such as ONGC and Oil India by lifting their net realizations and earnings."Brent has moved up to US$85/bbl from US$74/bbl earlier in the month," the brokerage said, adding that every US$1/bbl increase in Brent prices adds Rs 2.4–2.5/share to ONGC’s EPS and Rs 3.5–4/share to Oil India’s EPS, assuming no changes in government levies.According to Kotak, ONGC’s base case assumes an oil price of US$80/bblInterestingly,
