Oil prices jump over 4%: Oil India, ONGC rally around 5%; IOCL, BPCL, HPCL shares decline

At the time of writing this report, ONGC shares were trading 2.66% higher at ₹253.80 apiece on the NSE, while Oil India was trading over 4.6% higher at ₹486.95.

A rise in oil prices is positive for oil-producing companies such as Oil India and ONGC.

On the other hand, oil marketing companies (OMCs) were trading in negative territory; Indian Oil Corporation (IOCL) shares were trading 1.56% lower at ₹142.70 apiece, while Bharat Petroleum Corporation (BPCL) shares were down nearly 2%. Hindustan Petroleum Corp (HPCL) was trading 2.77% lower at ₹403.15.

Among paint stocks, Asian Paints were trading in positive territory, but Indigo Paints was trading 0.55% lower at ₹1,122.50 on the NSE.

Berger Paints India was also trading lower at ₹563.50, down 0.65%.

Tyre stocks, too, were witnessing selling pressure. MRF was down 0.7% at ₹1,35,830, while JK Tyre & Industries was trading 0.3% lower at ₹379.80.

CEAT Ltd was down 0.11% at ₹3,845.

Aviation stocks

Interglobe Aviation shares were trading 1.52% lower at ₹5,546. However, SpiceJet was trading 2.20% higher at ₹46.49.

Oil on the boil

Oil prices edged higher on Thursday to their highest in more than two months, after US President Donald Trump said US personnel were being moved out of the Middle East, which raised fear that escalating tensions with Iran could disrupt supply.

Crude oil prices rose more than 4% on Wednesday. Brent crude futures settled $2.90, or 4.34%, higher at $69.77 a barrel. U.S. West Texas Intermediate crude gained $3.17, or 4.88%, to $68.15. Both Brent and WTI reached their highest since early April.

Trump on Wednesday said US personnel were being moved out of the Middle East because "it could be a dangerous place", adding that the United States would not allow Iran to have a nuclear weapon.

Reuters reported earlier on Wednesday that the US was preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations around the Middle East due to heightened security risks in the region.