According to JS Research, oil prices are at their lowest levels since March 2005, down 69% from 2008 peak levels. And that has prompted investors to sell energy stocks globally. Similarly we have recently seen increase in off-market discount in E&P shares. Uncertainty regarding international oil prices is rising and thus it looks difficult to bet on which direction they will set in.

In Pakistan, OGDC, PPL and POL are all cash rich and can weather this storm but their dividends can shrink if falling oil price situation does not improve. The impact of price change would be significant for POL due to higher oil share in its hydrocarbon profile, followed by lesser impact on OGDC and PPL.