Tag: crudeoil

Shares of Reliance Industries Ltd (RIL), witnessed a sharp fall after the export tax hike announcement. RIL shares plunged more than 7%, its biggest decline in about 18 months, The sharp drop can be attributed to the government levying additional tax on domestically produced crude oil to take away windfall gains, according to experts. “Reliance is witnessing a sharp fall after the Government has levied taxes on windfall gains made by domestic refineries. The government on Friday announced an increase in taxes on the export of petrol, diesel, and aviation turbine fuel (ATF). The centre has also mandated exporters to meet the requirements of the domestic market first. The government has levied a ₹6 per litre tax on exports of petrol and ATF and ₹13 per litre on exports of diesel. Read more

Shares of oil marketing companies (OMC) and city gas distribution players (CGDs) are under pressure, falling up to 6 percent on the BSE in Thursday’s intra-day trade as oil prices topped the $100 a barrel-mark for the first time since 2014 after Russia ordered military operations in Ukraine and reports emerged of blasts in some major Ukrainian cities. Rising crude oil prices are considered a major challenge for India Inc. because any hike in raw material and energy prices may put further pressure on the margins of domestic companies going ahead. Unsurprisingly, following escalating geopolitical tensions, the Indian stock markets nosedived. Following the rise in crude oil prices, the cost of aviation turbine fuel (ATF) has advanced 19 percent to Rs 90,519 per kl from Rs 76,062 per kl on January 1. The rise in ATF prices may hit the balance sheet of airline companies which accounts for more than 35 percent of the cost of running an airline in India. Read more

A very strange thing happened On 20th March in the oil market: Prices fell so much that some traders paid buyers to take oil off their hands. The price of the main U.S. oil benchmark fell more than $50 a barrel to end the day about $30 below zero, the first time oil prices have ever turned negative. Such an eye-popping slide is the result of a quirk in the oil market, but it underscores the industry’s disarray as the coronavirus pandemic decimates the world economy. How prices went Negative: Prices went negative means- anyone trying to sell a barrel would have to pay a buyer $30 — in part because of the way oil is traded. Futures contracts that require buyers to take possession of oil in May are expiring on Tuesday, and nobody wanted the oil because there was no place to store it. Contracts for June delivery were still trading for about $22 a barrel, down 16% for the day. Read more