New Delhi, April 30 -- Global oil markets are likely to rebalance through demand destruction triggered by high crude prices amid ongoing supply disruptions, a trend that could improve margins for oil marketing companies (OMCs), according to a report by PL Capital.

The report, titled "Oil & Gas Sector Update," highlighted that the ongoing West Asia conflict has disrupted global oil supplies, particularly due to the closure of the Strait of Hormuz, a key transit route accounting for nearly, "20 percent of the world's oil trade". "The resultant disruption in supplies amounts to about 20 million barrels per day, there remains a shortfall of about 4.8 mbpd. This gap will probably be corrected through demand destruction by high fuel costs," re...