BPCL, HPCL and IOC jump over 3% on sharp fall in crude oil price

Crude oil futures ended deeply in the red on Tuesday as supply disruption concerns eased a bit on reports Israel is unlikely to attack Iranian oil facilities and instead will focus on Iranian military installations. Worries about the Chinese growth outlook and concerns about a demand slowdown hurt as well. China's National Development and Reform Commission pledged more measures to boost the Chinese economy but gave little in the way of details.

Benchmark crude oil futures for November delivery fell by $3.57 or about 4.63%, settling at $73.57 a barrel on the New York Mercantile Exchange. Brent crude for December delivery dropped by $3.75 or about 4.63% to settle at $77.18 a barrel on London's Intercontinental Exchange.

Following the fall, major oil marketing companies like Bharat Petroleum jumped 2.2%, while Hindustan Petroleum jumped over 4.5% higher and traded at ₹409 apiece on the NSE. Indian Oil Corporation shares also traded 1.5% higher on Wednesday morning. On a YTD basis, crude oil prices have largely remained stable, with nearly 2% gains in 2024. The Brent crude oil prices too, remained in a flat range in a similar period.

Though war-like conditions in the Middle East region remain a key overhang for OMCs, the over supply situation in the global market is expected to keep the oil prices in range.