Which companies will benefit from fall in oil prices and which firms will be hit? Here’s the analysis
Oil prices came under pressure due to oversupply concerns after OPEC+ (a group of oil-producing nations) decided to roll back production cuts in its 3 March 2025 meeting. The oil group had cut 2.2 mbpd (million barrels per day) of oil production in November 2023 but has now decided to release such output over April 2025 and September 2026.
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This increased supply, coupled with concerns about the impact of Trump’s tariffs on global economic growth, has dragged the Brent crude price below $70 per barrel. The price fell to $69.3 per barrel on 5 March, the lowest since September 2024.
Oil prices fell after move to increase oil supply by OPEC+, tariff concerns
Supply concerns and global uncertainties drive crude lower.
However, the price surged after OPEC+ issued a new plan on 20 March 2025 to manage oversupply concerns. This, along with fresh sanctions by the US on Iran, is also supporting the oil price. The price was $72 per barrel on 20 March 2025.
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Despite ongoing adjustments by OPEC on oil supply and production plans, the prices are expected to remain volatile amid demand concerns.
The prices declined by 3.5% year-to-date and 16% year-on-year. Experts believe that the prices will remain under pressure. While JM Financial has lowered its Brent price forecast to $70 per barrel (from $75 per barrel) for 2025-26, ICICI Securities puts it around $70 per barrel over the next 12 months. An Emkay report sees $70-75 per