Oil prices slip to 3-year low; Asian Paints, Indigo Paints, MRF, JK Tyre, ONGC in focus

Both Brent and WTI fell nearly $3 on Tuesday, with Brent hitting its lowest level since December 2021 and WTI falling to a May 2023 trough after OPEC+ revised down its demand forecast for this year and 2025.

Oil marketing companies (OMCs) such as Indian Oil Corporation, HPCL, and BPCL are also expected to trade with gains. 

On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report that world oil demand would rise by 2.03 million barrels per day (bpd) in 2024, down from last month's forecast for growth of 2.11 million bpd.

On Monday, Morgan Stanley cut its Brent crude oil forecasts for coming quarters and said the global oil market is facing a period of demand weakness similar to those seen during recessions.

"Rising fuel inventories, lower refining margins and the spreads between the price now and the price in the future all echo previous recessionary periods or other moments of weak demand," Reuters reported, quoting Morgan Stanley as saying.

Meanwhile, Morgan Stanley, as per news reports, has said the decline in oil prices would be a cause for concern for Indian equities if the oil market is right about its assessment of a global slowdown.

The financial firm said while falling oil may seem good for India's economy, earnings and shares, in practice, the impact depends on the reasons and duration of the fall.