Commodities
Kotak Raises Oil Price Assumption, Praises ONGC Over Oil India
Kotak Institutional Equities has raised its FY27 crude oil price assumption to $90 per barrel from $85, citing global oil market resilience despite disruptions.
The brokerage prefers ONGC over Oil India due to a stronger medium-term production outlook, better realisations, and relatively inexpensive valuations.
Kotak expects ONGC's production to improve with rising gas production from new fields and higher gas realisations from NWG.
The company's technical service provider (TSP) agreement with BP for its Western Offshore assets is expected to strengthen ONGC's medium-term production outlook.