IOC gains most from LPG hike

Hoping for respite

- Manish Joshi

The price of Brent crude oil has fallen to $61 per barrel from an average of $79 per barrel in January, when the Trump administration took charge. There are several reasons for the sharp fall. One, the ongoing tariff war threatens to slow down global economic activity, which could hurt demand for crude. Two, US president Donald Trump is pushing for more oil drilling to increase output, against the wishes of environmentalists. Three, a group of OPEC+ countries are strategically raising their oil production quota from April, thus creating downward pressure on crude prices. This in turn could discourage investments in oil production in the US, where costs are relatively higher.

All things considered, the outlook for crude prices is benign in the foreseeable future. So, how can investors play the crude theme?