New Delhi, March 9 -- India's state-owned oil marketing companies (OMCs) could face mounting earning pressure as crude oil market volatility intensifies amid escalating geopolitical tensions in West Asia, according to a research note by UBS Global Research.
The brokerage warned that the recent rally in crude oil prices and refining margins is creating conditions reminiscent of the disruptions witnessed during the 2022 oil market shock.
It noted that Indian OMCs remain structurally vulnerable to higher crude prices because a significant portion of their profitability depends on fuel marketing margins.
UBS said integrated margins for state-owned refiners and fuel retailers such as Indian Oil Corporation, Bharat Petroleum Corporation Limite...