CLSA remains positive on the oil & gas sector, noting that incremental oil demand for 2025 is likely to match incremental non-OPEC production growth.
In India, oil demand increased by 4% YoY in October, underscoring strong consumption trends. Additionally, the integrated diesel and petrol margins for Indian Oil Corporation (IOC), BPCL, and HPCL suggest a bumper Q3 performance for these oil marketing companies.
Among upstream players, CLSA continues to prefer ONGC, as the stock is currently pricing in sub-$60/bbl of crude realization, offering significant value in the current environment.
Disclaimer: The above is for informational purposes only. Please consult a financial advisor before making any investment decisions.
