For oil marketing companies like Indian Oil, Hindustan Petroleum, and Bharat Petroleum, lower oil prices stand positive. Lower oil prices help the company expand their margins, allowing them to profit more per unit of product sold.
For oil exploration companies like Oil and Natural Gas Corporation Ltd. and Oil India Ltd., lower oil prices stand negative, as they directly lower the revenue the companies earn per barrel of oil sold.
For sectors like paints, aviation, tyres, lubricants, manufacturers, cement and chemicals, lower oil prices stand positive. Since a major chunk of the raw materials used by the companies in these sectors are derivatives of oil, lower prices mean lower costs.
However, it is key to note that for the companies in the space to actually realise these benefits, crude prices need to stay around current levels since short-term fluctuations don’t tend to have any major financial impact because of the prevalent hedging strategies.