MARKET DEVELOPMENT
Mustard Oil Edges up on Local Demand
Mustard Oil Edges up on Local Demand
22/03/2017 (Outlook India) - Mustard oil prices inched up by Rs 50 per quintal in an otherwise steady wholesale oils and oilseeds market on scattered demand from local parties.
However, other edible and non-edible oils moved in a narrow range in limited deals and pegged at last levels.
Traders said mild demand from local parties mainly led to the rise in mustard oil prices.
In the national capital, mustard expeller (Dadri) oil moved up by Rs 50 to Rs 8,400 per quintal.
Following are today's quotations (in Rs per quintal):
Oilseeds: Mustard seed Rs 2,950-3,050 and Groundnutseed Rs 2,150-2,900. Vanaspati Ghee (15-litre tin) Rs 800-1,000.
Edible oils: Groundnut Mill Delivery (Gujarat) Rs 10,000, Groundnut Solvent Refined (per tin) Rs 1,800-1,900, Mustard expeller (Dadri) Rs 8,400, Mustard Pakki Ghani (per tin) Rs 1,350-1,395, Mustard Kachi Ghani (per tin) Rs 1,400-1,500, sesame Mill delivery Rs 8,300, Soybean Refined Mill Delivery (indore) Rs 6,950, Soybean Degum (Kandla) Rs 6,650, Crude Palm Oil (Ex-Kandla) Rs 4,700, Cottonseed Mill Delivery (Haryana) Rs 6,700, Palmolein (RBD) Rs 5,750, Palmolein (Kandla) Rs 5,800 and Coconut (per tin) Rs 1,950-2,000.
Non-edible oils: Linseed Rs 9,750, Castor Rs 9,900-10,000, Neem Rs 5,350-5,450.
New Delhi, Mar 21 Indian oil and gas companies are likely use their improved cash flows from market-linked fuel prices to expand their asset base and enhance operational quality, S&P Global Ratings said today.
They are expected to step up investments in upgrading refineries to meet cleaner fuel standards, improve yields and create flexible refinery configurations in product pipeline and gas infrastructure capacities, it said.
"The combination of reform-driven improvements in financial health, lower crude oil prices, and forecasts of mid-single-digit demand growth for petroleum products puts Indian oil companies in a sweet spot to invest in growth," S&P Global Ratings credit analyst Vishal Kulkarni said.
"We expect the fuel-price reforms in India since late 2014 to continue and enhance business and financial prospects for the oil and gas companies. Making fuel prices market linked has improved oil marketing companies' profitability, bolstered cash flows, and lowered their debt."
Oil marketing companies also need additional investments to maintain their dominant market share amid rising competition from private sector companies.
The planned combined capital expenditure (capex) by the three oil marketing companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum, over the next five years is Rs 3.2 lakh crore -- a huge jump from the Rs 1.6 lakh crore they invested over the past five years.
"While we don't expect the OMCs to reset their capex to higher levels immediately, their leverage could worsen if they were to elevate their capex plus acquisitions to USD 10 billion (about Rs 65,000 crore) a year without commensurate contribution to EBITDA," S&P said.
S&P Global Ratings believes the credit profiles of the companies could invariably attain investment-grade levels on their own or after considering government support and intervention due to their relationship with the government and the role they play.
However, other edible and non-edible oils moved in a narrow range in limited deals and pegged at last levels.
Traders said mild demand from local parties mainly led to the rise in mustard oil prices.
In the national capital, mustard expeller (Dadri) oil moved up by Rs 50 to Rs 8,400 per quintal.
Following are today's quotations (in Rs per quintal):
Oilseeds: Mustard seed Rs 2,950-3,050 and Groundnutseed Rs 2,150-2,900. Vanaspati Ghee (15-litre tin) Rs 800-1,000.
Edible oils: Groundnut Mill Delivery (Gujarat) Rs 10,000, Groundnut Solvent Refined (per tin) Rs 1,800-1,900, Mustard expeller (Dadri) Rs 8,400, Mustard Pakki Ghani (per tin) Rs 1,350-1,395, Mustard Kachi Ghani (per tin) Rs 1,400-1,500, sesame Mill delivery Rs 8,300, Soybean Refined Mill Delivery (indore) Rs 6,950, Soybean Degum (Kandla) Rs 6,650, Crude Palm Oil (Ex-Kandla) Rs 4,700, Cottonseed Mill Delivery (Haryana) Rs 6,700, Palmolein (RBD) Rs 5,750, Palmolein (Kandla) Rs 5,800 and Coconut (per tin) Rs 1,950-2,000.
Non-edible oils: Linseed Rs 9,750, Castor Rs 9,900-10,000, Neem Rs 5,350-5,450.
New Delhi, Mar 21 Indian oil and gas companies are likely use their improved cash flows from market-linked fuel prices to expand their asset base and enhance operational quality, S&P Global Ratings said today.
They are expected to step up investments in upgrading refineries to meet cleaner fuel standards, improve yields and create flexible refinery configurations in product pipeline and gas infrastructure capacities, it said.
"The combination of reform-driven improvements in financial health, lower crude oil prices, and forecasts of mid-single-digit demand growth for petroleum products puts Indian oil companies in a sweet spot to invest in growth," S&P Global Ratings credit analyst Vishal Kulkarni said.
"We expect the fuel-price reforms in India since late 2014 to continue and enhance business and financial prospects for the oil and gas companies. Making fuel prices market linked has improved oil marketing companies' profitability, bolstered cash flows, and lowered their debt."
Oil marketing companies also need additional investments to maintain their dominant market share amid rising competition from private sector companies.
The planned combined capital expenditure (capex) by the three oil marketing companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum, over the next five years is Rs 3.2 lakh crore -- a huge jump from the Rs 1.6 lakh crore they invested over the past five years.
"While we don't expect the OMCs to reset their capex to higher levels immediately, their leverage could worsen if they were to elevate their capex plus acquisitions to USD 10 billion (about Rs 65,000 crore) a year without commensurate contribution to EBITDA," S&P said.
S&P Global Ratings believes the credit profiles of the companies could invariably attain investment-grade levels on their own or after considering government support and intervention due to their relationship with the government and the role they play.