Suspense Crime, Digital Desk : Oil Marketing Companies (OMCs), gas transmission companies and LNG importers rose on June 16 after peace between Iran and USA. Brokerages say that the peace between Iran and USA and opening of Strait of Hormuz would reduce prices of crude oil, LPG and logistics costs for downstream oil and gas companies and increase earning possibilities for the companies.Shares of ONGC, Petronet LNG, BPCL, Oil India, GAIL and HPCL closed with gains up to 2% on Tuesday. The Nifty Oil & Gas index advanced 1.1% in today's trade, underperforming the Nifty which gained 0.6%.What did Nomura's report say?According to Nomura, OMCs, City Gas Distributors, Petronet LNG to gain most on opening of Strait of Hormuz with the first US-Iran peace accord. The brokerage expects crude oil price to soften as shipping traffic starts coming through the critical seaway slowly and the geopolitical risk premium ease out.Crude oil prices are expected to remain at around $70 per barrel levels in medium to long- term according to Nomura. With sanction lift of Iran and availability of crude oil in the global market after Iran re-entering market prices could be further lower says the brokerage. Indian OMCs could gain in terms of lower input costs and lower under recoveries on LPG and lower transportation costs says the brokerage.Buy opinion on BPCL and IOCBPCL and IOC were rated Buy by the brokerage with a price target of 365 and 180 while it reiterated Neutral on HPCL at a target price of 440.
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