OMCs on stronger wicket, oil producers stare at losses as crude plunges

Refiners like Reliance Industries may also see inventory losses adding pressure on already weak refining margins

The sharp fall in crude oil prices on Monday is not good news for domestic oil producers such as ONGC, Oil India and even privately-owned Vedanta, the natural resources major, whose subsidiary Cairn India is involved in oil production and exploration, as well as Reliance Industries (RIL). oil marketing companies (OMCs) will be hit in the short run too, but they stand to gain if oil prices sustain at lower levels.

Globally, while there continues to be a demand-supply mismatch, with oil supplies exceeding demand, it has led to storage issues for crude. This was a key reason for WTI