Amid Ukraine crisis, clouds of uncertainty weigh on OMC stocks

Fall in refining margins and likely sharing of subsidy burden are key overhangs

The war in Ukraine has led to spikes in oil and gas prices. Further price rises are likely if physical supply disruption occurs. Even otherwise, supply will be tight and prices will remain elevated for an undefinable period.

Russia’s crude oil production has been around 10 million barrels per day (b/d) and it has averaged exports of 4.7 million b/d for the past six months. The EU, US and UK have not directly imposed sanctions on Russian energy exports but sanctions will impact the banking system, and hinder industrial operations. The OPEC meets this month but a big hike in