Lower Oil Prices To Benefit Indian Downstream Companies: Goldman Sachs

Downstream companies, particularly oil marketing companies in India, are better placed to benefit from structurally lower oil prices and from a growing ability to charge higher marketing margins, notes Goldman Sachs. Nilesh Banerjee and team at Goldman Sachs in their May 18, 2015 research report titled: “India: Energy: Oil” predicts long-term Brent at US$55/barrel by CY20E. Oil Prices: Cost deflation from triple drivers The Goldman Sachs analysts point out that global oil markets are likely to witness triple supply drivers over the medium to long term viz.: (a) continued rise in U.S. shale productivity, (b) sustained OPEC growth and (c)…