HPCL most vulnerable to falling refining margins; RIL best placed

A higher diesel spread means refiners will see better GRMs as compared to the benchmark

Brent crude prices have set a firm trend of late, but there are expectations of oil prices softening with a rise in US inventories. This is the reason benchmark Singapore gross refining margins (GRMs) continue to see softness. 

This is not good news for Indian oil marketing companies (OMCs), which are feeling the heat of soft GRMs. The Indian Oil Corporation (IOC) and Hindustan Petroleum (HPCL) stocks have corrected more than 18 per cent since their highs in October. 

Bharat Petroleum (BPCL) — whose earnings are equally vulnerable to a change in refining margins — though, has been an exception and continues