🛢️ Nomura on Oil & Gas

Crude Outlook: Prices softened as OPEC+ supply increases. FX Risk: INR depreciation may dent margins for OMCs & City Gas Distributors (CGDs). Refining Margins: Sharp fall in Singapore GRMs unlikely to materially hurt Indian refiners. OMCs: Fuel marketing margins, though off record Q1FY26 highs, remain healthy at >₹6/litre. Nomura maintains Buy on

, , , with BPCL best placed. Gas Value Chain: Lower LNG prices are positive for (PLNG) & Gujarat Gas. GAIL, MGL, IGL also stand to gain from cheaper LNG feedstock. 📌 Takeaway: Despite short-term FX risks, the sector outlook remains supportive with OMCs continuing to enjoy strong marketing margins, while lower LNG benefits the gas chain. BPCL is Nomura’s top pick among refiners.