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Valuation of Indian oil companies: Thoughts after the meltdown in crude prices

Updated : May 04, 2020 06:10 AM IST

The meltdown has created a sense of global shock, especially after the agreement of oil production cuts (up to 10 percent or 9.5 MBPD) agreed between key producers, including OPEC and non-OPEC countries.
If oil prices stay at $30 per barrel, we are looking at a saving of over $50 billion (approximately INR 3,75,000 Crore) in the oil import bill in FY 21, without even considering the reduction in the quantum of oil consumption and imports.
Oil-producing companies in India will find it tough as the average market estimated cost of production is around $30/bbl.
Valuation of Indian oil companies: Thoughts after the meltdown in crude prices

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