OMCs may find it difficult to pass on price hike in upcoming quarter

With the rise in crude oil prices in international markets, state-run oil marketing companies (OMC) have been able to pass on most of the hike to the retail market. However, as resentment against higher fuel prices gets louder, not many are sure for how long the OMCs will manage to maintain margins.

In the next quarter, the country will also start gearing up for various Assembly elections, which analysts expect, could put the government as well as the OMCs under pressure. The Opposition parties have already called for a nation-wide strike on Monday to protest the rise in fuel prices.

“Given the recent uproar over the fuel price hike, the government may come under pressure to cut down on duties in the next few months, and, it won’t be a surprise, if the OMCs are expected to absorb some of it,” said an analyst with a domestic brokerage firm.

Diesel and petrol prices in the country have increased sharply in line with the rise in global prices. Both fuels have touched new highs, most of the rise seen in the last six months. On Friday, diesel cost Rs 72.1 per litre in Delhi, 24 per cent higher from a year back and petrol was Rs 80 per litre, 15 per cent higher from a year back. In Delhi, for instance, the central and state tax together add Rs 25.79 a litre to retail price for diesel and Rs 36.31 for petrol.

Oil prices down as supply glut, trade war concerns weigh on markets

Oil prices dipped on Tuesday, easing after strong gains in the previous session when hopes that trade disputes between the United States and China could be resolved buoyed global markets.

Despite a softening of trade concerns, oil markets still face an abundance of supplies that puts pressure on producers to keep their prices competitive in order not to lose market share.

U.S. WTI crude futures were at $63.26 a barrel at 0031 GMT, down 16 cents, or 0.3 percent, from their previous settlement.

Brent crude futures were at $68.52 per barrel, down 13 cents, or 0.2 percent.

The dips came after a more than 2 percent rally on Monday during European and American trade hours.

"Oil prices rose sharply (on Monday) as a weaker U.S.-dollar and easing concerns about the trade war saw investor appetite return," ANZ bank said.

World stocks advance as investors expect US, China to negotiate after all

World stocks edged higher on Thursday as investors used signs of an easing of Sino-U.S. trade tensions to dip back into riskier assets.

The MSCI world equity index, which tracks shares in 47 countries, climbed 0.4 percent, while shares in Europe jumped 1.6 percent to a two-week high.

Cyclical sectors including basic resources, autos and banks, hit particularly hard over the past two sessions in Europe, led gains.

Sentiment was lifted as Washington expressed a willingness to negotiate, after proposed U.S. tariffs on $50 billion of Chinese goods prompted swift retaliation from Beijing.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent, a day after it hit its lowest in almost two months.

Japan's Nikkei ended 1.5 percent higher. Markets in mainland China, Hong Kong and Taiwan were closed for the Tomb Sweeping Day holiday on Thursday.

Global stocks, dollar tumble as Trump sparks global trade war fears

The spectre of a global trade war sent world stocks tumbling towards a 2.5 percent weekly loss on Friday, and left bruised investors reaching for the traditional antidotes - government bonds, gold and the Japanese yen.

The falls came after U. S. President Donald Trump said the United States would impose tariffs of 25 percent on imported steel and 10 percent on aluminium, sparking concerns of retaliatory moves from major trade partners China, Europe and neighbouring Canada.

Europe's STOXX 600 index fell over 1.5 percent led by a near 5 percent slump from world's biggest steelmaker ArcelorMittal SA and 2.5 - 6 percent drops from the region's carmakers worried that they might be next.