Downstream companies, particularly oil marketing companies in India, are better placed to benefit from structurally lower oil prices and from a growing ability to charge higher marketing margins, notes Goldman Sachs.
Nilesh Banerjee and team at Goldman Sachs in their May 18, 2015 research report titled: “India: Energy: Oil” predicts long-term Brent at US$55/barrel by CY20E.
Oil Prices: Cost deflation from triple drivers
The Goldman Sachs analysts point out that global oil markets are likely to witness triple supply drivers over the medium to long term viz.: (a) continued rise in U.S. shale productivity, (b) sustained OPEC growth and (c) new projects. The analysts believe these triple drivers would add to deflationary pressures.
As depicted in the following table, Goldman Sachs’ global...
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