Indian Oil Corporation Ltd struggling to take up a stand against the outbreak
With the global oil and gas industry trembling over the impact of Coronavirus on the demand for oil and other resources which have been hit hard by the outbreak. China is one of the largest consumer and importer of crude oil grapples which has been affected by the spread of the Coronavirus. The benchmark crude oil prices have fallen by 20% to $55.14 per barrel which has shown a downfall of the demand for oil and other gases as the countries and companies are locked down across the world. Indian Oil Corporation Ltd is the country’s largest commercial oil company which accounts for nearly half of India’s petroleum products. The company has been taking steps to mitigate the losses caused by the outbreak as it plans to increase its supply of petroleum and diesel across the country and also it has decided to upgrade over 100 retail outlets across the Northeast and also set up a bottling unit in Mizoram for supporting the supply of petroleum and diesel.
The following chart of Bollinger bands and Awesome Oscillator indicates a downward trend for the stock as the virus outbreak has caused halt in the supply and distribution of materials and also the transportation as the country is on a lockdown of 21 days from 25th March 2020. Although there are few bullish candlesticks contrasting the effect of the outbreak, the current scenario of the Indian oil companies is competitive as they have to tackle the situation with strategic decisions. The Awesome Oscillator shows a downward trend for the stock as the price keeps falling, but the company had declared interim dividend to their shareholders during the chaos which also indicates the financial position of the company.
The company has also upgraded all its 28,000 petrol pumps to supply BS-6 grade fuel across the country replacing the BS-4 grade fuels. The company’s commitment of clean and conventional energy in the country has been achieved through this upgradation as it meets the new emission norms of the country which promotes cleaner and sustainable energy in the country. The company had also recently issued Non-Convertible Debentures of Rs.10,00,000 each to raise Rs.2,995 crore for their capital expenditure requirements which displays the liquidity position that has been affected by the Coronavirus pandemic.
The following chart of Ichimoku cloud Indicator also shows a bearish trend in the stock as the formation of red cloud continues in a downward direction and also the Chikou span also indicates a downward trend in the share price movements. The global oil and gas markets are cutting down the prices of oil to increase the supply which has been disrupted and also the oil companies can take advantage of the current scenario which would provide some relief on the overhead costs.
The following chart of Bollinger bands and Awesome Oscillator indicates a downward trend for the stock as the virus outbreak has caused halt in the supply and distribution of materials and also the transportation as the country is on a lockdown of 21 days from 25th March 2020. Although there are few bullish candlesticks contrasting the effect of the outbreak, the current scenario of the Indian oil companies is competitive as they have to tackle the situation with strategic decisions. The Awesome Oscillator shows a downward trend for the stock as the price keeps falling, but the company had declared interim dividend to their shareholders during the chaos which also indicates the financial position of the company.
The company has also upgraded all its 28,000 petrol pumps to supply BS-6 grade fuel across the country replacing the BS-4 grade fuels. The company’s commitment of clean and conventional energy in the country has been achieved through this upgradation as it meets the new emission norms of the country which promotes cleaner and sustainable energy in the country. The company had also recently issued Non-Convertible Debentures of Rs.10,00,000 each to raise Rs.2,995 crore for their capital expenditure requirements which displays the liquidity position that has been affected by the Coronavirus pandemic.
The following chart of Ichimoku cloud Indicator also shows a bearish trend in the stock as the formation of red cloud continues in a downward direction and also the Chikou span also indicates a downward trend in the share price movements. The global oil and gas markets are cutting down the prices of oil to increase the supply which has been disrupted and also the oil companies can take advantage of the current scenario which would provide some relief on the overhead costs.
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